PH financial system resources near P37T; banks dominated growth in 2025
The total resources of the Philippine financial system grew to nearly P37 trillion in 2025, likely driven by low interest rates that may have supported demand for loans.
Excluding the resources of the central bank, total funds and assets held by the local financial sector went up by an annualized rate of 8 percent to P36.9 trillion last 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. 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.
Lower rates
Total funds and assets held by banks amounted to P30.7 trillion as of 2025, 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 and deposits, as well as continued increase in earnings of lenders.
“Lower BSP rates partly led to higher trading gains and investment income for some banks,” Ricafort added, adding that the reduced borrowing costs likewise led to higher demand for credit.
Broken down, the resources of big lenders went up by 8 percent to P28.6 trillion in 2025, while thrift banks posted a solid 24-percent expansion to nearly P1.5 trillion.
Digital banks saw their resources surge by nearly 42 percent to P172.5 billion. However, funds and assets of rural and cooperative banks fell by nearly 4 percent to P506 billion.
Lastly, resources of nonbank financial institutions like investment houses, pawnshops, insurance companies and state-run pension funds edged up by 5 percent to P6.2 trillion, accounting for the remaining 17 percent of the total resources of the country’s financial system.
“In 2026, growth will likely be more measured but still solid, with banks focusing on targeted lending to priority sectors like infrastructure and consumption, while nonbanks benefit from capital market activity, trust funds, and insurance,” Jonathan Ravelas, senior adviser at Reyes Tacandong & Co., said.
“The story this year shifts from rapid accumulation to disciplined, higher‑quality growth,” Ravelas added.
