Data from the Bangko Sentral ng Pilipinas (BSP) showed that the Philippine financial sector's total resources increased by 9.20% as of the end of August this year.
Preliminary data released by the BSP on Tuesday showed that the total resources of banks and non-bank financial institutions reached P32.14 trillion in August, higher than the P29.43 trillion in August 2023.
Banks' total resources amounted to P26.80 trillion, up from last year's P24.23 trillion.
Broken down, the resources of universal and commercial banks rose to P25.08 trillion from P22.68 trillion, while thrift banks' resources also rose to P1.13 trillion.
The resources of digital banks amounted to P110.3 billion, while those of rural and cooperative banks reached P478.9 billion.
Meanwhile, the total resources of non-banks also increased to PHP5.3 trillion from P5.1 trillion in August last year.
Non-banks include BSP-supervised investment houses, financing companies, investment companies, securities dealers or brokers, pawnshops, lending investors, non-stock savings and loan associations, credit card companies, government non-bank financial institutions, and authorized agent banks and forex corporations.
Rizal Commercial Banking Corporation chief economist Michael Ricafort said the growth in the country's financial sector resources is similar and may largely reflect the increase in banks' loans, which is also consistent with the continued growth in banks' deposits as the economy recovers further the pandemic.
"The said growth in banks' total resources is nearly twice the country's GDP (gross domestic product) growth at 6.2% in the third quarter," he said in a Viber message.
"Further cuts in Fed and local policy rates would further boost the growth in loans amid increased business and other economic activities that would also boost other major sources of banks' income such as trading gains, fees, among others."
Ricafort said the Bangko Sentral ng Pilipinas' move to reduce banks' reserve requirement ratio would be another source of growth for banks' loans, earnings, and total resources.
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