Total assets of the Philippine banking system increased by 9.8 percent to Php 31.59 trillion in September 2026, driven partly by sustained lending growth and higher bank capitalization, according to data from the Bangko Sentral ng Pilipinas (BSP).
The latest figure was up from Php 28.77 trillion in September 2025 and exceeded the Php 31.27 trillion recorded in August this year.
Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort attributed the expansion partly to double-digit growth in bank lending, supported by reductions in the reserve requirement ratio (RRR) over the past two years.
Ricafort explained that the lower RRR allowed banks to free up additional funds for lending, helping support credit expansion and overall asset growth.
He also noted that some borrowers accelerated purchases and loan applications in anticipation of further interest rate increases and higher prices.
Meanwhile, the banking industry’s sustained profitability contributed to stronger capitalization, further supporting the expansion of total assets.
Ricafort said Philippine banks have remained among the country’s most profitable businesses, benefiting from improved risk management practices and stronger financial positions.
He emphasized that the adoption of international best practices in managing credit, market and operational risks has helped banks maintain profitability despite domestic and global economic challenges.
The continued expansion of banking assets reflects the sector’s growing financial resources, supported by lending activity, capital accumulation and sustained earnings.
