The strengthening of the peso is deemed to be due to the good election results and a growing domestic economy. The Standard and Charterd Bank was eager to increase its business in the country by tapping into small and medium scale enterprise lending and mortgage lending. "All the fundamentals are excellent," bank chief executive Eugene Ellis said after the signing of a P5-billion local bond float by the Asian Development Bank. He also added that they will grab the opportunity since the fundamentals are all in place.

Yesterday, the peso closed at 46.04 to a dollar compared to Tuesday's 45.87 but heavy foreign buying of Philippine stocks and solid inflows of foreign exchange from overseas Filipino workers sustained the peso.

The Standard and Chartered Bank would stand fast to its policy of wholesale lending with its involvement as prime arranger of the ADB peso bond float. The bank is in the brink of presenting a centralized credit bureau in the Philippines and will also iron out three more financial deals of about the same size within the year.