PH financial system’s resources rise to P35.6T
Total resources of the Philippine financial system climbed back to the P35-trillion level as of September, driven by growth in big and thrift banks amid a robust credit expansion.
Excluding the resources of the central bank, total funds and assets held by the local financial sector went up by an annualized rate of 6 percent to P35.6 trillion in the first nine months of the year, data from the Bangko Sentral ng Pilipinas (BSP) showed.
These resources represent cash and assets like credit, deposits, capital, and bonds that financial entities can use to meet their funding needs.
At the same time, the amount also includes capital that regulated institutions set aside as rainy-day funds to cover potential losses and depreciation.
The sustained growth, in turn, would continue to support the financing requirements of the country’s growing economy, which is currently facing challenges emanating from a widening corruption scandal that has gutted business confidence.
Figures showed banks continued to corner the bulk of the total resources of the domestic financial system, holding an 83 percent share.
Total funds and assets held by banks amounted to P29.6 trillion as of September, marking a 7.3 percent growth. Michael Ricafort, chief economist at Rizal Commercial Banking Corp., attributed this to “sustained double-digit growth” in bank loans, adding that further interest rate cuts could help boost credit growth.
Additional easing moves, Ricafort added, could “boost overall economic growth, while also helping sustain total assets and resources in the financial system.”
Broken down, the resources of big lenders had gone up by 7 percent to P27.6 trillion, while thrift banks had posted a solid 23-percent expansion to P1.4 trillion.
Digital banks had seen their resources climb by 34 percent to P149.7 billion. However, funds and assets of rural and cooperative banks fell by nearly 15 percent to P424.9 billion.
Lastly, resources of nonbank financial institutions like investment houses, pawnshops, insurance companies, and state-run pension funds edged up by 3 percent to P6 trillion, accounting for the remaining 17 percent of the total resources of the country’s financial system.
