MANILA — The total resources of the Philippine financial sector increased by more than 6 percent in July 2025, the Bangko Sentral ng Pilipinas (BSP) reported.

Data from the BSP showed that the total resources of banks and non-bank financial institutions reached PHP34.59 trillion, up from PHP32.50 trillion in the same month last year.

Banks’ total resources amounted to PHP28.60 trillion, higher than PHP26.79 trillion in July 2024. Universal and commercial banks accounted for PHP26.66 trillion of this figure, up from PHP25.10 trillion, while thrift banks’ resources rose to PHP1.37 trillion. Digital banks recorded PHP141.7 billion in resources, and rural and cooperative banks totaled PHP424.9 billion.

Non-bank financial institutions’ resources also grew, reaching PHP5.99 trillion from PHP5.70 trillion in July 2024. Non-banks include BSP-supervised investment houses, financing companies, 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 said the growth in total financial system resources aligns with the country’s 5.5-percent GDP expansion.

“The latest year-on-year growth in the total resources of the financial system is consistent with the GDP (gross domestic product) growth of 5.5 percent,” Ricafort said in a Viber message.

He added that further cuts in Fed and BSP policy rates could lower borrowing costs, making loans cheaper and boosting demand for bank loans, which in turn could contribute to faster growth in banks’ total resources.

(PNA)