MANILA, Philippines — Financial institutions under the supervision of the Bangko Sentral ng Pilipinas (BSP) maintained a steady growth trajectory in the second half of 2024, supported by stronger balance sheets, income gains, and a wider reach across digital and physical platforms, the central bank said in a new report.

In its Report on the Philippine Financial System for the second semester of 2024, the BSP said the expansion in key financial indicators allowed banks and non-bank financial institutions to continue delivering services to households, businesses, and underserved sectors.

The report pointed to the strong performance of banks, including trust entities and foreign currency deposit units, as well as non-bank institutions. The BSP attributed these gains to a wider financial network and broader use of electronic channels, which helped improve service delivery and accessibility for consumers.

While the BSP lauded the role of its own reforms and collaborative efforts in supporting industry expansion, it also cited broader improvements in the macroeconomic and financial outlook. 

“BSP’s policy reforms and collaboration, alongside improving macroeconomic and industry outlook, have enabled supervised entities to expand and meet Filipinos’ evolving financial needs,” BSP Governor Eli M. Remolona, Jr. said.

Alongside financial trends, the report also outlined several ongoing supervisory and regulatory initiatives. These include enhanced monitoring of risks related to money laundering and terrorism financing, an updated assessment framework for money service businesses and pawnshops, and a roadmap for strengthening the industry’s cyber resilience.

The BSP also confirmed it has lifted the moratorium on the creation of digital banks, a move expected to attract new market players and widen consumer options in the digital financial space.

The central bank said it will continue pushing for structural reforms and coordinating with development partners, regulators, and the private sector to build what it describes as a “resilient, inclusive, and sustainable” financial system.