Non-banks’ domestic claims up by 15 percent in Q4

MANILA, Philippines — The domestic claims of non-bank financial institutions increased by 15 percent to P9.05 trillion in the fourth quarter of 2023 from P7.87 trillion in the same quarter in 2022, based on a survey of the Bangko Sentral ng Pilipinas (BSP).

However, the growth rate was slower than the 17.8-percent expansion in the third quarter of 2023. On a quarterly basis, domestic claims inched up by 2.7 percent from P8.81 trillion in the previous quarter.

Other financial corporations (OFCs) refer to institutional units providing financial services other than banks, non-banks with quasi-banking functions, non-stock savings and loan associations, and the central bank.

OFCs are non-money market funds of trust institutions, trust corporations, and investment companies, private and public insurance corporations, holding companies, government-owned or – controlled corporations engaged in financial intermediation, as well as other financial intermediaries and auxiliaries.

“The growth is attributable to the rise in the sector’s claims on the central government, the private sector and the depository corporations,” the BSP said.

The sector’s claims on the central government grew due to higher holdings of government-issued debt securities. OFCs’ claims on the private sector also increased as investments in equity shares issued by nonfinancial firms and household loans grew.

“The sector’s claims on the depository corporations also rose amid the increase in its bank deposits and holdings of bank-issued securities,” the central bank said.

By component, claims on other sectors, specifically the private sector, covered the bulk of the OFCs’ domestic claims, followed by claims on depository corporations and the central government.

Claims on the private sector went up by 9.7 percent to P4.49 trillion, while net claims on the central government jumped 21.5 percent to P2.26 trillion. Claims on depository corporations rose by 20 percent to P2.27 trillion.

Further, the net foreign assets of OFCs jumped by 48 percent to P388.6 billion in the three-month period from P262.6 billion a year ago.