PHL financial system resources rise to P35.8 trillion as of Nov.

THE PHILIPPINE financial system’s resources climbed by 7.14% year on year as of end-November, with bulk of these held by banks, preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed.

Resources held by banks and nonbank financial institutions stood at P35.763 trillion at end-November, growing from P33.379 trillion a year earlier.

Month on month, this went up by 1.28% from the P35.312 trillion at end-October.

The financial system’s resources include funds and assets such as deposits, capital, and bonds or debt securities.

Broken down, banks’ resources reached P29.659 trillion at end-November, rising by 7.65% year on year from P27.551 trillion previously.

Universal and commercial banks recorded P27.567 trillion in resources, increasing by 6.91% from P25.785 trillion a year prior.

Thrift banks’ resources also jumped by 23.7% year on year to P1.42 trillion from P1.148 trillion previously.

Meanwhile, the resources of rural and cooperative banks grew by 1.53% to P505.9 billion as of November from P498.3 billion the prior year.

Lastly, digital banks had P165.9 billion in total resources, surging by 38.6% year on year from P119.7 billion.

On the other hand, latest available data from the central bank showed that nonbanks held P6.104 trillion worth of resources as of end-June 2025, up from P5.704 trillion a year prior.

Nonbank financial institutions include BSP-supervised investment houses, finance companies, security dealers, pawnshops and lending companies, as well as nonstock savings and loan associations, credit card companies, private insurance firms, and state-run pension funds.

John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies said increasing deposits, balance sheets being shifted to low-risk assets, and stable demand for credit helped drive the increase in resources.

“(It) reflects continued deposit growth, balance sheet reallocation toward safer assets, and steady credit demand, particularly from households and select corporates, even amid slower growth,” he said via Viber.

“Banks benefited from higher deposits and investments in government securities, while nonbank financial institutions expanded through consumer finance, insurance, and capital market activities supported by financial deepening and digital channels.”

Jonathan L. Ravelas, a senior adviser at Reyes Tacandong & Co., said the sustained growth in resources signals confidence in the Philippine financial system.

“Households are saving more, firms are slowly borrowing again, and banks are deploying capital into higher-yielding securities,” he said in a Viber message. “It’s a sign the financial system remains liquid and resilient.” — Katherine K. Chan