The Philippine financial system continued its steady growth in July, with total resources climbing past P34.59 trillion — a 6 percent jump from P32.50 trillion a year ago, according to the Bangko Sentral ng Pilipinas (BSP).
Banks remained the backbone of the sector, holding P28.60 trillion in resources, higher than last year’s P26.79 trillion. Universal and commercial banks led the charge at P26.66 trillion, while thrift banks accounted for P1.37 trillion. Digital banks contributed P141.7 billion, and rural and cooperative banks posted P424.9 billion.
Non-bank financial institutions also expanded, growing their collective resources to P5.99 trillion from P5.70 trillion in July 2024. These include investment houses, financing firms, securities dealers, pawnshops, credit card companies, government financial institutions, and other BSP-supervised entities.
Rizal Commercial Banking Corporation chief economist Michael Ricafort noted that the expansion mirrors the country’s 5.5 percent GDP growth. He added that potential interest rate cuts from both the US Federal Reserve and BSP could further stimulate lending by lowering borrowing costs, which would in turn push banks’ total resources even higher.