MANILA — Total assets of the Philippine banking system increased by more than 8 percent in February this year, according to data from the Bangko Sentral ng Pilipinas (BSP).

In a report released Wednesday, the BSP said the banking sector’s total assets reached PHP29.19 trillion in February, reflecting an 8.3 percent increase from PHP26.95 trillion recorded in the same period last year.

The figure also edged higher compared to the PHP29.11 trillion recorded in January.

“The rise in banking sector assets reflects healthy, disciplined growth. Loans are expanding alongside steady economic activity, while banks are also increasing investments in government securities to manage liquidity amid still-elevated interest rates,” said Jonathan Ravelas, senior adviser at Reyes Tacandong & Co.

Ravelas said the data indicates continued confidence in the financial system, although banks are maintaining a cautious approach to lending.

“This means that confidence is intact, but banks are being selective and risk-aware,” he said.

He added that asset growth is expected to continue but at a more moderate pace, with a focus on lending quality and balance sheet strength.

“Moving forward, asset growth should continue but at a more measured pace — focused on quality lending and balance-sheet strength. Bottom line: the banking system is liquid, stable, and growing for the right reasons,” Ravelas said.