PHL financial institutions’ resources rise to PHP 12.83T in end Q1 ‘14

By on May 17, 2014

Bangko Sentral ng Pilipinas (Central Bank of the Philippines). Wikipedia photo
Bangko Sentral ng Pilipinas (Central Bank of the Philippines). Wikipedia photo

MANILA — The high liquidity situation in the Philippines is proven by, among others, the increase in financial system’s total resources.

Bangko Sentral ng Pilipinas (BSP) data show that at the end of the first quarter of 2014, total resources of banks and non-bank financial institutions reached P12.83 trillion.

This is slightly higher than the end-February 2014’s P12.79 trillion and year-ago’s P10.8 trillion.

These resources are boosted by the sustained rise of deposits, among others, which in turn are being used by the banks for lending activities.

Of the total, banks continue to hold the biggest share of the funds after it reached P10.45 trillion, higher than the P10.42 trillion in end-February and the P8.42 trillion in end-March 2013.

But non-bank entities like pawnshops are not left behind because of their rising client base.

As of end-March this year non-banks financial institutions’ total resources reached P2.37 trillion, higher than year-ago’s P2.34 trillion.

Among the banks, universal and commercial banks (U/KBs) posted the highest share at P9.42 trillion, which is understandably so because they have the largest number of branches nationwide.

U/KBs’ total resources as of end-March this year is higher compared to the P9.4 trillion at the end of the first two months this year and the P8.23 trillion same period last year.

Banks in the next tier, which are the thrift banks (TBs), also posted an increase in resources after the amount reached P830 billion as of end-March this year.

This is higher than the P824.3 billion as of last February and the P676.4 billion same period last year.

On the other hand, total resources of rural banks is steady at P202 billion from the end-February 2014 level but is higher year-ago’s P192.6 billion.