The total resources of the Philippine financial system grew 6.42 percent year-on-year to P34.59 trillion in July 2025, preliminary data from the central bank showed on Tuesday.
The Bangko Sentral ng Pilipinas (BSP) data showed that the total resources expanded from P32.50 trillion in the same month a year earlier.
It said that on a month-on-month basis, resources fell 1.33 percent from P35.06 trillion in June.
Resources of the country’s banks, which account for the bulk of the financial system, rose 6.72 percent year-on-year to P28.60 trillion at the end of July.
Universal and commercial banks saw their total resources jump 6.23 percent to P26.66 trillion. Thrift banks’ resources increased 23.13 percent to P1.37 trillion.
Digital banks’ resources grew 33.18 percent to P141.7 billion. However, rural and cooperative banks saw an 11.28 percent decline in resources to P424.9 billion.
Resources of non-bank financial institutions (NBFIs) remained at their end-March figure of P5.99 trillion. These institutions include private insurance companies, the Social Security System and the Government Service Insurance System.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp. (RCBC), said the year-on-year growth in resources was consistent with the country’s 5.5-percent gross domestic product (GDP) growth in the second quarter.
Ricafort said future cuts in policy rates by the US Federal Reserve and the BSP could reduce borrowing costs and boost demand for loans, contributing to faster growth in bank resources.
He said continued bank profitability and deposit growth would also support this trend, “provided that NPL [non-performing loan] ratio remains relatively lower and some improvement in overall asset quality.”
