Banks’ investments...
ue through other comprehensive income (FVOCI).
Meanwhile, the BSP said securities measured at fair value through profit or loss (FVTPL) accounted for only 5.7 percent or ₱372.8 billion of the total.
However, banks’ investment growth rate was slower compared to 23.1 percent endjune 2022.
As of June this year, the share of securities measured at FVOCI decreased to 34.3 percent from the 38.5 percent of the previous year while the share of securities measured at amortized cost increased to 60 percent from 55.8 percent in June 2022.
Besides strong growth in investments, the banking sector also showed growth in lending which has been previously reported, and deposits in the first half of the year.
Bank deposits funded the key activities of banks such as lending and investing. As of end-june, the total deposits increased 8.1 percent year-onyear to ₱17.8 trillion. About 84.6 percent or ₱15.1 trillion of the total deposits were denominated in peso, while 99.1 percent or ₱17.7 trillion were sourced from resident depositors.
“This deposit mix provides insulation to the banking system from potentially significant funding withdrawals by investors due to developments in the global financial markets,” said the BSP.
The banking sector is the core of the financial system and it continues to be resilient and stable with a strong balance sheet, profitable operations, sufficient capital and liquidity buffers, and ample provision for probable losses, said the BSP.
With adequate resources, deposits and earnings, the BSP said banks remain well capitalized and highly liquid, with a capital adequacy ratio and key liquidity ratios exceeding the BSP regulatory and international standards.
Remolona has said before that the domestic financial system has maintained its strong performance in the first half of 2023 on the back of improving macroeconomic conditions as well as “prudent regulatory and supervisory reforms.”