Philippines’ financial system resources increased by 8.8 percent to P33.076 trillion as of the end of November 2024 from P30.394 trillion same time in 2023 as funds and assets held by banks and non-bank financial institutions (NBFIs) continued to expand.
Based on data from the Bangko Sentral ng Pilipinas (BSP), the banking sector accounted for bulk of total resources at P27.551 trillion, up 9.56 percent from same period in 2023 of P25.146 trillion. Total resources continued to grow because of deposits and loans, as well as from banks’ income and capital.
By banking group, the big banks or the 44 universal and commercial banks held P25.785 trillion of total resources during the period. This was 9.4 percent higher than the previous year’s P23.564 trillion.
The country’s 41 thrift banks contributed P1.147 trillion, up by 7.09 percent from the previous year’s P1.071 trillion.
The six digital banks, meanwhile, accounted for P119.5 billion of total resources which was 39.9 percent higher than end-November 2023’s P85.4 billion.
As for the 362 rural banks and 21 cooperative banks, their total resources stood at P498.3 billion, up by 17.17 percent versus the previous year’s P425.8 billion.
NBFIs or non-banks have a lag period of five to six months. As of end-June 2024, NBFIs have total resources of P5.524 trillion, 5.28 percent higher than same period in 2023 of P5.247 trillion.
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.
In 2023, the total financial system resources amounted to P31.187 trillion. This was higher compared to 2022’s P28.864 trillion and P26.357 trillion in 2021.
The BSP said the local banking sector in 2024 sustained its growth momentum with a strong assets' base, loans, deposits, capital and liquidity positions. This allowed banks and non-banks to have enough resources to support economic growth as well as provide funding for businesses.