PH financial resources up at ₱30.869 T – BSP

The country’s financial system resources went up by eight percent year-on-year to P30.869 trillion as of end-february from P28.583 trillion same time last year, buoyed by banks and non-banks’ positive outlook on the economy over the medium term.

Based on Bangko Sentral ng Pilipinas (BSP) data, total resources of the banking sector stood at P25.572 trillion as of endfebruary, up by 9.46 percent compared to P23.526 trillion in 2023.

The BSP said the banking system has continued to improve in both resources and asset quality. Banks represent the bulk of the financial sector, with the big banks accounting for about 93.8 percent of the total banking system’s resources. The remaining 6.2 percent is composed of the following: thrift banks with 4.2 percent; rural and cooperative banks with 1.6 percent; and digital banks with 0.4 percent.

Of the total banking resources, the big banks or the universal and commercial banks accounted for P24.141 trillion while thrift banks held P1.09 trillion. The smaller rural and cooperative banks accounted for P426 billion but this data has a lag time.

Financial resources are held by banks and non-banking financial institutions (NBFIS) as funds and assets. These are boosted by deposits, capital, and bonds or debt securities.

Similar with rural and cooperative banks, the BSP also takes its time in reporting NBFIS’ resources. As of end-september 2023, NBFIS accounted for P5.117 trillion of total resources.

NBFIS are investment houses, finance companies, investment companies, securities dealers/brokers, pawnshops and lending investors. Non Stocks Savings and Loan Associations (NSSLAS), credit card companies under BSP supervision, private insurance firms, Social Security System and the Government Service Insurance System are also classified as NBFIS.

As of March 2024, the BSP is regulating and supervising 44 big banks, 42 thrift banks and 388 rural and cooperative banks. There are also six digital banks but their operations are still new and data is still incomplete.

There are also 1,320 NBFIS without quasi-banking function. These are investment firms, NSSLAS and pawnshops. Only five NBFIS have quasi-banking function which means they can borrow funds from 20 or more lenders. These include investment houses with trusts business, financing companies, among others.