The Bangko Sentral ng Pilipinas (BSP) assured the public on Thursday that equity and property markets are safe from an asset bubble for now, based on latest indicators. “In the case of the equity market, valuations have come down recently, thereby lessening the risk of an asset bubble,” he said. “Hence, we see both developments in both equities and real estate sector as mainly driven by market fundamentals,” he said. He also said lower credit demand, as well as tighter credit standards, reduce the likelihood of asset price inflation on account of a credit boom. As of last year, the ratio of overall nonperforming real estate loans to total real estate loans remains below 2 percent.

Source: Manila Times July 30, 2020 18:22 UTC