Total resources of the Philippine financial system rebounded in May, reaching a record ₱37.64 trillion, nearly one percent higher than the ₱37.31 trillion recorded in April, driven by “some hedging and frontloading” of loans before further price spikes occur.

This recovery was supported by broad growth across the banking sector, which saw its total resources rise to ₱31.29 trillion, up 1.1 percent from the ₱30.96 trillion reported in the previous month.

The latest preliminary Bangko Sentral ng Pilipinas (BSP) data showed that these resources—which cover deposits, capital, and debt securities—were dominated by the banking sector, which accounted for approximately 83 percent of the system’s total.

As of end-May, total resources of big banks, or universal and commercial banks (U/KBs), grew to ₱29.01 trillion from ₱28.71 trillion reported in April.

Thrift banks’ resources rose to ₱1.49 trillion from ₱1.47 trillion in the previous month.

Digital banks’ resources continued their strong growth trajectory, increasing by approximately 4.5 percent to ₱203.7 billion from ₱195 billion in April.

Resources of rural and cooperative banks (RCBs) remained at ₱587 billion, as the latest available figures still reflect data as of end-December 2025.

Non-bank financial institutions (NBFIs), which include entities such as investment houses, pawnshops, and insurance companies, held ₱6.35 trillion in resources, representing roughly 17 percent of the system’s total.

Similar to RCBs, the reported May figures for NBFIs remained unchanged from the April report, as they continue to be based on data as of end-December 2025.

According to the BSP, the non-banking sector includes a variety of entities such as investment houses, financing companies, investment companies, securities dealers/brokers, pawnshops, lending investors, non-stock savings and loan associations (NSSLAs), credit card firms, and state-run insurers, including Social Security System (SSS) and Government Service Insurance System (GSIS), along with private insurance companies.

Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort said the rebound, despite heightened tensions in the Middle East, was likely driven by businesses and consumers frontloading purchases funded by bank loans to avoid higher inflation and borrowing costs.

“Continued growth in banks’ deposits at high single-digit levels in recent months and continued net income of banks also added to the growth in total resources,” Ricafort said.

“However, total resources growth could slow in the coming months as higher interest rates at home and abroad weigh on borrowing demand, while banks adopt a more cautious lending stance to contain bad loans amid slower growth, elevated inflation, and the adverse effects of the war,” he added.