There's nothing to worry about Philippine banks' liquidity in 2017: Fitch

The low aggregate loan-to-deposit ratio of 71% is proof.

According to Fitch Ratings, system liquidity remains healthy, as evident in the low aggregate loan/deposit ratio of 71% (at end-September 2016) and the significant pool of funds deposited with the central bank.

"Liquidity conditions should remain comfortable in 2017 as existing liquidity buffers, credit creation and foreign remittance inflows help to cushion against debt and currency market uncertainty. We expect banks to continue to prize stable deposits and term funding ahead of Basel III LCR requirements that will be phased in over 2018-2019," says Fitch.

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