The domestic claims of non-bank or other financial corporations (OFCs) went up by 3.3 percent year-on-year to P7.493 trillion as of end-third quarter 2022 from same period in 2021 of P7.256 trillion, according to the central bank.

Based on the Bangko Sentral ng Pilipinas’ (BSP) latest Other Financial Corporations Survey (OFCS), the OFCs’ domestic claims were higher because of more claims on the central government and the other sectors during the period.

The OFCs’ claims on the central government increased by 13.94 percent to P1.879 trillion from P1.649 trillion due to their holdings of government securities.

“Similarly, the OFCs’ claims on the other sectors grew slightly, owing to the increase in loans extended to the private sector, i.e., the households and nonfinancial corporations,” said the BSP. Claims on the other sectors totalled P4.006 trillion, up slightly by 1.44 percent from P3.949 trillion.

These other sectors are state and local government, public nonfinancial corporations, and private sector. Specifically, the private sector are the other non-financial corporations, and households and non-profit institutions serving households. The other nonfinancial corporations refer to private corporations and quasi-corporations whose principal activity is the production of market goods or nonfinancial services.

The BSP said the OFCs’ claims on depository corporations declined by 3.11 percent in the third quarter 2022 from P1.657 trillion to P1.607 trillion because of the decrease in their holdings of bank-issued debt securities and bank deposits during the period.

Meanwhile, the OFCs’ net foreign assets went up by 28.4 percent to P246.9 billion in the third quarter 2022 from P192.3 billion same period in 2021. “(This was) largely on account of the expansion in its investments in debt as well as shares and other equity securities issued by non-resident entities,” said the BSP.

OFCs’ liabilities totalled P7.740 trillion, up by 3.9 percent from P7.448 trillion in 2021.

The central bank also noted that the expansion in the OFCs’ gross assets was funded mainly by its issuances of shares and other equity to other sectors.

The OFCS is BSP’s” comprehensive measure of the claims and liabilities of the OFCs”.

OFCs as defined by the BSP are institutional units providing financial services other than banks, non-banks with quasi-banking functions, nonstock savings and loan associations, and the central bank.

The BSP said these institutional units are comprised of non-money market funds of trust institutions, trust corporations, and investment companies, private and public insurance corporations, holding companies, government-owned or -controlled corporations engaged in financial intermediation, and other financial intermediaries and auxiliaries.