Banks’ resources up in March

Banks increased their resources anew in March, showing they have enough to meet the needs of their clients and to set aside some to guard against external shocks.

Bangko Sentral ng Pilipinas data showed universal, commercial, thrift, and rural banks grew their resources by nine percent to P11.393 trillion in end-March from P10.447 trillion in the same period last year.

The continued rise in resources, which include deposits, profits, and retained earnings, indicate that banks have the ability to service funding needs of corporate and household clients.

At the same time, this shows banks have enough to act as a buffer against any external shocks.

Universal and commercial banks continued to make up the bulk or 90 percent of the resources in the first quarter. The big banks grew their resources by nine percent to P10.256 trillion in end-March from P9.413 trillion in the same period in 2014.

Thrift banks also increased their resources by 11 percent to P918.9 billion, while rural banks grew theirs by four percent to P218.4 billion from P209.4 billion.

Banks accounted for 81 percent of the Philippine financial system’s total resources in the first quarter.

The local financial system’s resources jumped nine percent to P14.128 trillion in end-March from P13.014 trillion in the same period a year ago.

Non-banks booked a seven percent hike in their resources to P2.735 trillion during the period from P2.567 trillion last year.

Non-banks are made up of investment houses, finance companies, investment firms, securities dealers and brokers, pawnshops, lending investors, non-stock savings and loan associations, credit card companies, and insurance companies.