Sign up | Log in



Home  >>   Daily News  >>   Philippines News  >>   Finance  >>   Excess liquidity in Philippines rises
NEWS UPDATES Asean Affairs                      15  August 2011

Excess liquidity in Philippines rises

Related Stories

August 10, 201
Philippines banks see no harm from US downgrade

August 3, 2011
Philippines banks may increase reserves

July 16, 2011
Philippines completes second bond swap

June 17, 2011
Philippines central bank increases reserves

May 21, 2011
World Bank extends loan to the Philippines

April 29, 2011
Philippines looks for credit rating upgrades

April 22,2011
Philippines approves ADB loan for financial sector

March 31, 2011
“Friendly” Philippine banks targeted

Excess liquidity mopped up by the Philippine central bank rose by more than half in the first six months of the year.

Data from the Bangko Sentral ng Pilipinas showed that financial institutions’ placements in its special deposit account facility grew by 66.4 percent to reach P1.4 trillion at end-June compared with P834.4 billion in the same period last year.

The SDA is one of the tools that monetary officials use in siphoning off excess liquidity in the financial system.

During the global financial crisis, the BSP decided to change the rules governing its SDA, allowing trust departments of banks and non-bank government-owned and controlled corporations to use this facility.

The SDA offers interest rates higher than yields on government securities of the same tenors.

With measures such as the SDA, the central bank aims to bring down the growth in domestic liquidity to below 20 percent.

The four percent rate had been enticing banks to place their money in the vaults of the BSP through the SDA instead of lending it out for other purposes.

Bank placements under the BSP’s reverse repurchase window reached P295.2 billion, an increase of 42.7 percent from last year.

The closely watched domestic liquidity or M3 widened by 11.4 percent in June from the eight percent expansion in the previous month.

On a monthly, seasonally-adjusted basis, M3 widened by three percent from the one percent growth previously.

Alongside the acceleration in money supply was the continued expansion in bank lending, which grew at a faster 19 percent in June compared with 17.4 percent the previous month.

Last June’s growth was the fastest since April 2009.

Likewise, outstanding loans of commercial banks inclusive of RRPs accelerated at a faster rate of 20.5 percent from an expansion of 19.3 percent in May.

On a month-on-month, seasonally-adjusted basis, however, commercial banks’ lending in June declined by 2.4 percent for loans net of RRPs and by 0.5 percent for loans inclusive of RRPs.

BSP Gov. Amando Tetangco Jr. said the sustained expansion in domestic liquidity and bank lending supported the view that financial conditions were stable and that the domestic economy was growing within a sustainable economic path.

Going forward, the BSP would continue to ensure that liquidity and credit conditions keep at pace with overall economic activity while remaining consistent with the BSP’s price stability objective, he said.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Today's  Stories    15  August  2011 Subsribe Now !
• Indo rubber trade may slip Subcribe: Asean Affairs Global Magazine
• False duty stamps crackdown in Indonesia Asean Affairs Premium
• Electronics firms in Malaysia brace for yearend
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• Immigrant worker registration extension welcomed
• Excess liquidity in Philippines rises
• Fugitive ex-PM Thaksin gets Japanese entry
• Teacher leader urges southern security

• Asean integration backed by Vietnam

Asean Analysis    15  August  2011

Advertise Your Brand
• The real test Sponsor Our Events

Asean Stock Watch   15  August  2011

• Asean Stock Watch-August 15 p

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore
• Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline
• Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More


Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2017 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand