The country’s total financial system resources expanded to P32.801 trillion as of end-October this year, up by 8.96 percent from same period last year of P30.101 trillion due to the continued growth of deposits, loans, income and capital.
Financial resources are funds and assets held by banks and non-banking financial institutions (NBFIs). The steady increase in resources has allowed banks to support the growth of the domestic economy.
The banking sector accounted for bulk of total resources at P27.276 trillion as of end-October. This amount was 9.74 percent higher compared to P24.853 trillion same time in 2023.
By banking group, the big banks or the 44 universal and commercial banks control P25.518 trillion of the industry resources, up by 9.63 percent from P23.276 trillion last year.
The country’s 41 thrift banks, meanwhile, have P1.146 trillion of total resources which was 7.4 percent higher than the previous year’s P1.067 trillion.
The six digital banks hold P113.8 billion of total resources versus P84.4 billion same period last year or an increase of 34.8 percent.
As of end-October, the 383 rural banks and 22 cooperative banks contributed P498.3 billion to total resources, up by 17.17 percent from P425.8 billion same time in 2023.
NBFIs or non-banks have a lag period of five to six months. The latest data is end-June 2024. The non-banks accounted for P5.524 trillion of total resources during the period, up by 5.28 percent from P5.247 trillion in 2023.
NBFIs are investment houses, finance companies, investment companies, securities dealers/brokers, pawnshops and lending investors. Non Stocks Savings and Loan Associations (NSSLAs), credit card companies under BSP supervision, private insurance firms, Social Security System and the Government Service Insurance System are also classified as NBFIs.
The BSP is supervising 1,546 NBFIs without quasi-banking function. These are investment firms, NSSLAs and pawnshops. Only five NBFIs have quasi-banking function which means they can borrow funds from 20 or more lenders. These include investment houses with trusts business, financing companies, among others.
Last year, the total financial system resources reached P31.187 trillion. This was higher compared to 2022’s P28.864 trillion and P26.357 trillion in 2021.
In a report, the BSP said the local banking sector sustained its growth momentum in the first six months of 2024, with a strong assets' base, loans, deposits, capital and liquidity positions, and providing support to the economy and businesses.
As of end-October, the banking system reported total assets of P26.407 trillion, funded mostly by deposits that banks use for lending and investment activities. Total liabilities, on the other hand, stood at P23.077 trillion for the first 10 months of 2024.