Total financial resources up 8% to ₧30.9T in FEB–BSP

THE Philippine financial system’s total resources increased in February this year on the back of higher resources among universal and commercial banks (UKBS), according to the latest data released by the Bangko Sentral ng Pilipinas (BSP).

The country’s total financial resources grew 7.996 percent to P30.869 trillion in February 2024 from the P28.583 trillion recorded in February 2023.

This was composed of the P25.752-trillion resources in Philippine banks and P5.117 trillion of resources lodged in non-banks.

The resources in banks increased 9.46 percent from the P23.526 trillion posted in February 2023 while non-bank resources increased 1.18 percent from P5.057 trillion in February last year.

Among banks, the largest resources were with UKBS which reached P24.141 trillion in February 2024, a 9.18-percent growth from the P22.112 trillion posted in the same period last year.

This was followed by thrift banks, with resources amounting to P1.09 trillion in February 2024, a 7.64-percent growth from the P1.012 trillion posted in February 2023.

This was followed by Rural and Cooperative banks whose resources amounted to P426 billion, the same level of resources it had in the past six months.

However, BSP data showed this was a 5.91-percent growth from the P403 billion posted in February 2023.

Digital banks (DGBS), meanwhile, saw total resources climb to P95 billion in February 2024, the highest level of resources posted by DGBS since the BSP began monitoring their resources in March 2023.

In March 2023, DGB resources was recorded at P61 billion, steadily climbing to the P90-billion level: first recorded at P91 billion in December 2023.

Earlier, BSP said it takes at least five years before digital banks can realize a profit, but it remains keen on licensing more of these banks due to high interest among market players.

BSP Governor Eli M. Remolona Jr. said increasing the number of digital banks from the six that have been given licenses is part of the digitalization strategies of the central bank.

Currently, BSP Deputy Governor Mamerto E. Tangonan said only two out of the six digital banks are profitable. Nonetheless, he said, the other digital banks expect to realize a profit between five and seven years of operation.

The central bank official said the BSP will soon release a comprehensive report on the performance of digital banks. BSP will use the data in this report will determine if the moratorium on issuing digital bank licenses will be extended or lifted.