Financial system resources hit record P38.6 trillion in August

MANILA, Philippines — The total resources of the Philippine financial system climbed to a record P38.56 trillion in August as banks continued to expand their balance sheets, data from the Bangko Sentral ng Pilipinas (BSP) showed.

The August figure was 11.1 percent higher than the P34.69 trillion recorded in the same month last year. It also rose by 1.2 percent from P38.09 trillion in July.

Total financial system resources broadly represent the assets held by banks and non-bank financial institutions, including loans, investments, cash and other financial holdings.

Banks accounted for the bulk of the financial system, with total resources rising by 12.5 percent to P32.17 trillion from P28.59 trillion a year earlier.

Universal and commercial banks, the country’s largest lenders, held P29.78 trillion in resources as of August, up by 11.8 percent from P26.63 trillion in the same month last year.

Their resources represented more than 92 percent of the banking sector total, reflecting the dominant role of large banks in the Philippine financial system.

Thrift banks, which typically cater to consumers and small and medium enterprises, posted an 11.8-percent increase in resources to P1.54 trillion from P1.38 trillion.

Digital banks continued to record the fastest expansion among bank groups, with resources surging by 51.1 percent to P225.2 billion from P149 billion a year ago.

The BSP has been expanding the digital banking segment as part of efforts to widen access to formal financial services. The central bank recently approved a seventh digital bank license after earlier imposing a temporary cap on the number of digital banks operating in the country.

The BSP has also tightened capital rules for institutions operating digital bank-like business models, requiring affected thrift, rural and cooperative banks to comply with a P1-billion minimum capitalization requirement.

Meanwhile, resources of rural and cooperative banks jumped by 46.8 percent to P623.9 billion from P424.9 billion in August last year.

Rural and cooperative banks mainly serve borrowers and depositors outside major urban centers, including farmers, small businesses and local communities.

Resources held by non-bank financial institutions stood at P6.39 trillion. However, the 2026 figure was only available as of end-March.

Non-bank financial institutions covered by the data include BSP-supervised investment houses, financing companies, investment companies, securities dealers and brokers, pawnshops, lending investors and credit card companies.

The category also covers government non-bank institutions such as the Philippine Guarantee Corp. and Small Business Corp. as well as the Social Security System, Government Service Insurance System and private insurance companies.

At end-2025, total resources of the Philippine financial system stood at P37.13 trillion, including P30.79 trillion held by banks and P6.34 trillion by non-bank financial institutions.