The Philippine banking sector’s total assets expanded 9.2 percent to P25.2 trillion in the second semester of 2023 from the same period in 2022, according to the Bangko Sentral ng Pilipinas (BSP).
The BSP said in a report the banking sector’s assets represented about 83.3 percent of the total resources of the Philippine financial system.
Banks continued to report robust balance sheets and profitable operations in 2023. Capital and liquidity buffers remained sufficient against unforeseen shocks and market volatility, with capital adequacy and liquidity ratios well above the BSP regulatory and international thresholds.
“The continued health and stability of the Philippine financial system is a cornerstone to inclusive and sustainable growth of the Philippine economy,” BSP Governor Eli Remolona Jr. said.
The non-bank financial institutions also posted solid performance in 2023. The non-bank sector serves as an able conduit for the delivery of crucial financial products and services to underserved and unserved market segments through their extensive physical network nationwide.
The report presents the overall performance of foreign bank branches and subsidiaries, foreign currency deposit units of banks and trust entities as well as thematic box articles featuring the key developments and BSP policy reforms implemented by the BSP in 2023 toward a safe, sound and resilient financial system.
The BSP said it remains fully committed to pursuing progressive financial sector reforms to fully align the Philippine financial system with the ongoing rapid digital transformation and sophistication of the global financial services industry.
The BSP reaffirms its collaborative stance to work closely with relevant stakeholders in implementing meaningful and broad-based financial sector reforms dedicated to the sustained dynamism, resilience, inclusiveness and sustainability of the financial system, which contributes to equitable economic prosperity for more Filipinos.