From The Report: The Philippines 2016
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As banks expand credit to a traditionally under-banked economy, the sector is enjoying a period of rapid catchup growth. A positive feedback loop is at work in which banks are increasingly driving economic growth, supported by inflows from foreign investment and Filipinos working abroad, while growing trust in the banking system is drawing greater volumes of savings. Although bank lending has risen quickly, to $122bn in September 2014, it was equal to just over 40% of annual GDP. That is about half the level in Thailand and a third of the level in Malaysia, leaving considerable room for further expansion. Indeed, by the time regional integration comes to pass, Philippine banks may be more competitive across South-east Asia than many are expecting. This chapter contains an interview with Amando M Tetangco Jr, Governor, Bangko Sentral ng Pilipinas; and a roundtable with Reynaldo A Maclang, President, Philippine National Bank; Alfonso L Salcedo Jr, President and CEO, Security Bank; and Justo A Ortiz, Chairman and CEO, UnionBank of the Philippines.