Manila: The Philippine financial sector experienced a significant increase in its total resources, rising by over 6 percent in July, as reported by the Bangko Sentral ng Pilipinas (BSP). The recent data revealed a substantial growth in the financial sector’s resources, reaching PHP34.59 trillion, compared to PHP32.50 trillion in the same period last year.

According to Philippines News Agency, banks and non-bank financial institutions have both shown notable increases in their total resources. Banks alone reported a rise in resources, totaling PHP28.60 trillion, up from PHP26.79 trillion in July of the previous year. Specifically, universal and commercial banks saw their resources grow to PHP26.66 trillion from PHP25.10 trillion, while thrift banks’ resources increased to PHP1.37 trillion. Digital banks contributed PHP141.7 billion, and rural and cooperative banks reported resources of PHP424.9 billion.

The non-bank sector also reflected positive growth, with total resources reaching PHP5.99 trillion, a rise from PHP5.70 trillion in July of the preceding year. This sector comprises various entities, including BSP-supervised investment houses, financing and investment companies, securities dealers or brokers, pawnshops, lending investors, non-stock savings and loan associations, credit card companies, government non-bank financial institutions, and authorized agent banks and forex corporations.

Rizal Commercial Banking Corporation chief economist Michael Ricafort highlighted the alignment of this growth with the country’s GDP increase of 5.5 percent. He noted that potential reductions in Federal Reserve and BSP policy rates could lower borrowing costs, making loans more affordable and boosting the demand for bank loans, which in turn, could further enhance the growth of banks’ total resources.