THE Bangko Sentral ng Pilipinas (BSP) said the domestic claims of non-bank financial companies rose 2.7 percent in the fourth quarter 2024, slightly higher than the 2.1-percent growth in the third quarter of the same year.
Preliminary results of the Other Financial Corporations Survey showed that domestic claims of other financial corporations reached P9.05 trillion in fourth quarter of 2023, up from P8.8 trillion in the third quarter and P7.8 trillion in the fourth quarter of 2022.
The survey provides a comprehensive measure of the claims (or assets) and liabilities of the other financial corporations (OFCs) in the Philippines.
“The QoQ [quarter-on-quarter] growth in the other financial corporations’ domestic claims stemmed from the rise in its claims on the other sectors, the central government and the depository corporations,” the BSP said.
“The other financial corporations’ claims on the other sectors, particularly the private sector, grew on account of the sector’s increased investments in equity shares issued by other nonfinancial corporations and higher loans extended to households,” it said.
The sector’s claims on the central government increased as its holdings of government-issued debt securities rose. Similarly, the sector’s claims on the depository corporations grew, owing to its higher holdings of bank-issued debt securities and deposits with the banks.
The net foreign assets of the other financial corporations also climbed 4.8 percent QoQ from P370.9 billion to P388.7 billion as the sector’s investment in nonresident-issued debt securities expanded.
The growth, however, was lower than the 6.4 percent upturn posted in the third quarter. Meanwhile, the sector’s other liabilities rose on account of the increase in its shares and other equity issuances and insurance technical reserves.
The BSP said that on a year-on-year (YoY) basis, the other financial corporations’ domestic claims grew, albeit at a slower pace of 15 percent in the fourth quarter 2023 from 17.8 percent in the third quarter of 2023.
“The growth is attributable to the rise in the sector’s claims on the central government, the private sector and the depository corporations. In particular, the sector’s claims on the central government expanded on account of higher holdings of government-issued debt securities,” the BSP said.
