More indications of so much money flooding the country’s financial system have been emerging. In the latest auction on Wednesday, for example, the P90 billion total volume offered attracted more than P180 billion in subscriptions. The central bank’s steady raising of the TDF volume indicates that it is struggling a bit to mop up the extra money in the financial system. The reason there is so much money flooding the financial system is that the economy is in fairly robust shape, and businesses are earning profits. The money is simply being parked in company accounts and reflected in banks’ ever-expanding deposit holdings.

Source: Manila Times September 21, 2016 16:18 UTC