The Bangko Sentral ng Pilipinas allayed concerns an asset bubble is forming amid the pace of credit growth due to strong demand for real estate in the country.

BSP Deputy Governor Chuchi Fonacier said the central bank does not see the need to put a cap on lending, as the latest figures showed that bank lending decelerated.

The BSP raised interest rates 5 times last year, totaling 175 basis points after inflation hovered near 10-year highs.

"We're not really having this notion that there's an asset bubble. What we're doing really is to have more granularity in the reports we require from banks," Fonacier said.

She added there were areas in the property sector that actually needed to scale up, particularly the commercial spaces.

The BSP however, expects banks to do stress-testing on their lending to the property sector, she said.

Fonacier also said she was optimistic the central bank can achieve its goal of greater financial inclusion through electronic payments by 2020.