DOMESTIC CLAIMS of nonbank financial institutions grew in the second quarter, the Bangko Sentral ng Pilipinas (BSP) said on Tuesday.
Domestic claims of nonbank financial firms climbed by 19.2% year on year to P8.61 trillion in the second quarter from the P7.22 trillion seen in the comparable year-ago period, data from the BSP’s Other Financial Corporations Survey (OFCS) showed.
The year-on-year growth was faster than the 12.2% expansion in the first quarter of 2023. Quarter on quarter, domestic claims rose by 4.7% from P8.22 trillion previously.
The OFCS analyzes the assets and liabilities of the OFC sector. It uses standardized report forms as required by the International Monetary Fund, including financial statements from insurance firms, holding companies, government financial institutions, investment companies, other financial intermediaries, and trust institutions.
“The year-on-year growth in the other financial corporations’ domestic claims in the second quarter of 2023 was due to higher claims on the depository corporations, the other sectors, and the central government,” the BSP said in a statement.
“In particular, the other financial corporations’ claims on depository corporations expanded significantly owing to the sector’s increased deposits in banks and holdings of bank-issued equity shares,” it said.
Claims on depository corporations surged by 42.2% year on year to P2.16 trillion and went up by 5.5% compared with the first-quarter level.
“Likewise, the other financial corporations’ claims on other sectors, particularly the private sector, grew due to the sector’s higher investments in equity shares and debt securities issued by other nonfinancial corporations as well as the uptick in the loans extended to the households,” the BSP said.
Claim on other sectors rose by 10.1% year on year to P4.35 trillion in the second quarter and was 3.8% higher than the previous quarter’s level.
“Meanwhile, claims on the central government expanded due to the other financial corporations’ increased holdings of government securities,” the central bank said.
OFCs’ net claims on the central government rose by 23.4% year on year to P2.16 trillion in the second quarter of 2023. This was up by 9.1% from the prior three-month period.
Net foreign assets held by other financial corporations jumped 51% to P348.1 billion from P230.7 billion in the comparable year-ago period, BSP data showed. It rose by 14.5% on a quarterly basis.
Meanwhile, claims of OFCs on nonresidents rose by 12.9% year on year to P519.12 billion from P420.99 billion in the second quarter of 2022.
Liabilities to nonresidents edged up by 1.2% year on year to P170.73 billion. — Keisha B. Ta-asan