Financial system’s resources up 9.16% at end-February

THE TOTAL RESOURCES of the Philippine financial system grew by 9.16% as of February, preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed.

Resources held by banks and nonbank financial institutions increased to P36.784 trillion at end-February from P33.696 trillion a year prior. This was also up by 1.25% from the P36.33 trillion at end-January.

These include funds and assets such as deposits, capital, and bonds or debt securities.

Broken down, resources held by banks increased by 9.98% year on year to P30.56 trillion at end-February from P27.78 trillion previously.

Universal and commercial banks’ resources went up by 9.17% to P28.344 trillion at end-February from P25.963 trillion last year.

Thrift banks’ resources surged by 26.25% year on year to P1.469 trillion from P1.16 trillion, while those held by rural and cooperative banks climbed by 7.19% to P565 billion from P527.1 billion.

Digital banks’ resources also jumped by 41.07% to P179.3 billion from P127.1 billion, BSP data showed.

On the other hand, resources of nonbank financial institutions rose by 5.25% to P6.226 billion as of September 2025 from P5.916 billion at end-February 2025.

Nonbanks include investment houses, finance companies, security dealers, pawnshops, and lending companies.

Institutions such as nonstock savings and loan associations, credit card companies, private insurance firms, the Social Security System, and the Government Service Insurance System are also considered nonbank financial firms.

The expansion in the Philippines’ financial resources reflected continued growth in bank lending, deposit growth, and asset accumulation as domestic demand remained resilient, Philippine Institute for Development Studies Senior Research Fellow John Paolo R. Rivera said in a Viber message.

However, this growth may moderate for the rest of the year as faster inflation, elevated borrowing costs, and geopolitical uncertainty could dampen credit demand and risk appetite, he said.

“The outlook is one of continued but more measured growth, with the financial system remaining broadly stable.” — A.M.C. Sy