PH total financial resources reached an impressive P31 trillion
The Bangko Sentral ng Pilipinas (BSP) released data revealing that the Philippines’ total financial system resources surged to P31.056 trillion by the end of last year, marking a notable 7.59 percent increase from P28.864 trillion in 2022.
These financial resources are comprised of funds and assets held by both banks and non-banking financial institutions (NBFIs), including deposits, capital, bonds, and debt securities.
In 2023, the banking system accounted for the majority of these resources, totaling P25.859 trillion, reflecting an 8.61 percent rise from P23.807 trillion in the previous year. Within the banking group, universal and commercial banks, referred to as big banks, constituted about 94 percent of the total resources, amounting to P24.263 trillion, an 8.43 percent increase from P23.376 trillion in 2022.
Thrift banks, supervised by the BSP, contributed P1.1 trillion to the total resources, showing a seven percent growth from P1.028 trillion in 2022. Meanwhile, rural banks, cooperative banks, and NBFIs collectively held P5.197 trillion of total resources as of end-June 2023, a 2.77 percent uptick from P5.057 trillion in 2022.
NBFIs encompass various entities such as investment houses, finance companies, securities dealers/brokers, pawnshops, and lending investors. Additionally, non-stocks savings and loan associations (NSSLAs), credit card companies, private insurance firms, and government-related financial entities like the Social Security System and the Government Service Insurance System fall under the NBFI classification.
As of January 2024, BSP data indicated the presence of 1,336 NBFIs without quasi-banking functions, including investment firms, NSSLAs, and pawnshops. Only five NBFIs have quasi-banking functions, allowing them to borrow funds from 20 or more lenders, which include investment houses engaged in trust business and financing companies, among others.
Business News: PH total financial resources reached an impressive P31 trillion
