The Philippine financial system’s total resources climbed to nearly ₱37 trillion at end-2025, driven by steady loan growth and robust deposit inflows, underscoring the resilience of the country’s banking sector amid high-interest-rate environment.

Preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed that total resources held by banks and non-bank financial institutions (NBFIs) reached ₱36.93 trillion as of end-December last year.

This represents an increase of ₱2.76 trillion, or approximately 8.1 percent, from the ₱34.17 trillion recorded at the end of December 2024.

Similarly, the end-December figure increased by 2.9 percent from end-November’s ₱35.88 trillion in resources. These resources include funds and assets such as deposits, capital, and bonds or debt securities.

Reyes Tacandong & Co. Ravelas senior adviser Jonathan Ravelas said the sustained expansion of the country’s financial system in 2025 comes on the back of steady loan growth, strong deposit inflows, and the boost from the higher interest rates on bank balance sheets.

“Overall, it reflected resilience and confidence in the system,” Ravelas said.

Banks’ resources increased by ₱2.45 trillion, or 8.7 percent, to ₱30.71 trillion as of end-December 2025, up from ₱28.26 trillion a year ago. Banks’ resources now account for 83.1 percent of the financial system’s outstanding total.

Broken down, big banks—or universal and commercial banks—held resources valued at ₱28.57 trillion, rising 8.1 percent from the ₱26.44 trillion recorded at end-2024. Thrift banks’ resources reached ₱1.46 trillion, jumping 24.4 percent from ₱1.17 trillion a year earlier.

Meanwhile, rural and cooperative banks’ total resources stood at ₱505.9 billion. Based on the latest data available for this sector (which is as of end-September 2025), this represents a 4 percent decrease from the ₱527.1 billion reported at end-December 2024.

Resources of digital banks jumped by 42 percent to ₱172.5 billion from ₱121.5 billion at the end of 2024.

NBFIs, which accounted for 16.9 percent of the system’s total resources, held ₱6.23 trillion in resources. This represents an increase of 5.3 percent from the ₱5.92 trillion held at the end of December 2024.

According to the BSP, the latest available data for NBFIs and rural/cooperative banks in the end-2025 report is actually as of end-September 2025.

Non-banks include investment houses, finance companies, securities dealers, pawnshops, and lending companies. According to the central bank, NBFIs also include non-stock savings and loan associations, credit card firms, private insurance firms, and state-run insurers—the Social Security System (SSS) and the Government Service Insurance System (GSIS).

Looking ahead, Ravelas expects growth in the financial system’s resources will “likely be more measured but still solid, with banks focusing on targeted lending to priority sectors like infrastructure and consumption, while nonbanks benefit from capital market activity, trust funds, and insurance.”

“The story this year shifts from rapid accumulation to disciplined, higher‑quality growth,” the economist added.