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May 27, 2024

Philippine financial system hits P31 trillion in resources

The Philippine financial system witnessed robust growth in its resources by the end of February, fueled by optimistic sentiments among both banks and non-banking institutions.

According to data from the Bangko Sentral ng Pilipinas (BSP), the total resources of the financial system surged to P30.87 trillion. This increase was primarily propelled by a 9.5 percent uptick in banking system resources, which reached P25.57 trillion, with major banks contributing the majority at P24.1 trillion. The remaining portion was held by thrift banks and rural and cooperative banks.

The BSP noted that the banking system exhibited positive progress in both resource expansion and asset quality.

Non-banking financial institutions (NBFIs) also played a significant role, with their resources reaching P5.12 trillion as of September 2023, based on the latest available data.

NBFIs encompass various entities such as investment houses, financing companies, securities dealers, pawnshops, lending institutions, non-stock savings and loan associations, credit card companies, private insurance firms, and government social security institutions.

The BSP oversees a total of 44 major banks, 42 thrift banks, 388 rural and cooperative banks, and several newly established digital banks.

The upward trajectory of the financial system’s resources has been consistent, with figures reaching P31.12 trillion in 2023, compared to P28.86 trillion in 2022.