OFCs’ Q1 domestic claims rose to P7.33 T — BSP

Published July 31, 2022, 8:10 PM

by Lee C. Chipongian

The Bangko Sentral ng Pilipinas’ (BSP) survey of other financial corporations (OFCs) showed domestic claims grew by 7.3 percent year-on-year in the first quarter to P7.33 trillion from P6.83 trillion.

Based on the latest Other Financial Corporations Survey (OFCS), the higher claims on the private sector and net claims on the central government was the main factor for the increase in domestic claims.

Money/File (Manila Bulletin article)

Meantime, OFCs posted higher net foreign assets during the period of P252 billion, up 61.1 percent from same period last year of P156.4 billion.

The BSP noted increased investments in debt and equity securities issued by non-resident entities. “The expansion in the OFCs’ assets was funded primarily by their issuances of shares and other equity,” said the BSP.

The private sector includes other non-financial corporations, households and non-profit institutions serving households. The other non-financial corporations are private corporations and quasi-corporations that produce market goods or non-financial services.

In the first quarter period, OFCs’ claims on the private sector increased due to higher investments in equity securities issued by private non-financial corporations. More loans were also granted to households.

“The growth in domestic claims can also be attributed to OFCs’ higher claims on the national government as evidenced by the sector’s increased holdings of government securities,” said the BSP.

As for OFCs’ claims on depository corporations, the central bank reported a decline in the first quarter due to lower bank deposits and decreased holdings of debt securities issued by banks.

The OFCS is a comprehensive measure of OFCs’ claims and liabilities.

As of end-March this year, OFCs’ other liabilities increased by 8.5 percent year-on-year to P7.58 trillion from P6.99 trillion same time in 2021.

OFCs include trust institutions’ non-money market funds, trust corporations, and investment companies, private and public insurance corporations, holding companies, among others.