Preliminary data from Bangkok Sentral Ng Pilipinas (BSP) show that the resources of the Philippines’ financial system climbed to P35.17 trillion P35.17 trillion.
As of June 2024, the combined resources of banks and non-bank financial institutions have increased by 7.45% year by year.
These resources include funds and assets such as deposits, capital and bonds or debt securities.
Preliminary central bank data shows that as of June, the bank’s resources were P29.18 trillion P29.18 trillion, an increase of 7.95% from P27.03 trillion P27.95% a year ago.
Total resources of Quanmin Corporation and Commercial Bank increased by 7.15% year-on-year to reach a P25.32 trillion year-on-June.
The resources of frugal banks reached P1.37 trillion P1.32%, an increase from P1.12 trillion P1.32% in the same period in 2024.
As of June, the resources held by digital banks also increased by 28.48%, reaching 142.1 billion to 14.2 billion to 1.1110.6 billion times.
Finally, as of March, rural and cooperative banks had resources of pesos 543.2 billion, from the 478.9 billion recorded at the end of June 2024.
Meanwhile, as of June 2024, the resources of non-bank financial institutions rose by 5.01% from the end of March to 55.99 trillion.
Non-banks include investment companies, financial companies, security dealers, pawn shops and loan companies regulated by BSP. The Non Stock Savings and Loan Association, credit card companies, private insurance companies, social security systems and government services insurance systems are also non-bank financial institutions.
Strong loan growth, especially in the consumer sector, has promoted the continued expansion of resources in the Philippines’ financial system, said Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp. in Viber information.
He added that the ongoing easy bikes of BSP help increase demand for credit, and cutting banks’ reserve ratios can also increase their loanable funds.
“The continued profitability of banks, one of the most profitable industries in the country in years, increases the capitalization and total resources of banks. The continued growth of bank deposits, similar to the growth of GDP, also fundamentally supports faster loan growth and promotes greater income, interest income and net interest rates,” Mr Ricafort said.
“In the coming months, relatively faster loan growth may further strengthen loan growth due to lower Fed and BSPs in the coming months or years, [which] Can support further growth of bank earnings, capital and assets or resources. ”
BSP Governor Eli M. Remolona, Jr. It said they could make two more tax cuts before the end of the year, and the next reduction could occur at the Monetary Commission meeting on August 28.
After this month’s review, the remaining meetings of the Monetary Commission are scheduled to be held on October 9 and December 11.
BSP cuts the benchmark borrowing cost (BP) for two consecutive times this year through April and June, totaling 50 basis points (BP), with the policy rate now at 5.25%. Since August 2024, the cumulative decline has been reached to 125 basis points.
Meanwhile, the Fed kept its target interest rate within the range of 4.25%-4.5% since December, and officials quoted officials as an assessment of the inflation and economic impact of the Trump administration’s tariff policies. But Fed policymakers said at a July meeting that they will continue to cut tax rates twice this year.
Recent data strengthened the U.S. central bank’s stake in mitigation actions in September. – Katherine K. Chen
