PH financial system resources hit new high

A logo of the Bangko Sentral ng Pilipinas (Central Bank of the Philippines) is seen at their headquarters in Manila, Philippines on April 28, 2016. —REUTERS

The Philippine financial system’s resources climbed to a record high in May, underscoring the banking sector’s resilience as lenders continued to expand credit and attract deposits despite market volatility and economic uncertainty tied to the conflict in the Middle East.

Excluding the Bangko Sentral ng Pilipinas (BSP), the combined funds and assets held by the country’s financial institutions rose 10 percent from a year earlier to P37.6 trillion, according to central bank data.

The total reflects the financial sector’s available resources, including cash, loans, deposits, capital and investment securities, as well as reserves that regulated institutions maintain to absorb potential losses and safeguard financial stability.

The amount was the highest on record dating back to 1970.

The steady expansion suggests that banks remain well positioned to meet the financing needs of households and businesses, providing support for an economy that continues to navigate risks from geopolitical tensions abroad.

In its report on the Philippine financial system for the second half of 2025, the BSP said banks and nonbank financial institutions had remained in sound condition during the period, leaving the industry well-positioned when the Middle East crisis escalated earlier this year.

Figures showed banks continued to corner the bulk of the total resources of the domestic financial system, holding over 83 percent of the pile. Total funds and assets held by banks amounted to P31.3 trillion as of May, up by nearly 11 percent.

Broken down, the resources of big lenders went up by 11 percent to P29 trillion, while thrift banks posted a solid 15-percent expansion to nearly P1.5 trillion.

Digital banks saw their resources surge by over 45 percent to P203.7 billion. Funds and assets of rural and cooperative banks grew by 8 percent to P587 billion.

Lastly, resources of nonbank financial institutions like investment houses, pawnshops, insurance companies and state-run pension funds edged up by 5 percent to P6.3 trillion.