In the first half
of the year, Philippine
banks increased their investments by 9.2 percent
to reach a total of P6.6
trillion, contributing to the
robust growth of the financial system, marked by
stability, profitability, and
ample capital and liquidity,
as reported in the Bangko
Sentral ng Pilipinas (BSP)
Report on the Philippine
Financial System for the
First Semester of 2023.
The majority of
these investments, approximately 60 percent or
P4 trillion, were in debt
securities measured at
amortized cost, while an
additional 34.3 percent or
P2.3 trillion were in securities measured at fair value
through other comprehensive income (FVOCI).
The BSP noted
that despite the strong
growth in investments, the
rate of growth was slower
compared to the previous
year.
Furthermore, the
banking sector also exhibited growth in lending and
deposits, with total deposits increasing 8.1 percent
year-on-year to P17.8 trillion as of end-June.
These deposits,
particularly peso-denominated ones, provided
insulation to the banking
system against potential
funding withdrawals due
to global financial market
developments.
Overall, the
banking sector remains
resilient and stable, with
strong balance sheets,
profitable operations, and
adherence to regulatory
and supervisory reforms,
as per BSP Governor Eli
M. Remolona Jr.
The assets of
Philippine banks, totaling
P23.3 trillion at the end of
the first half, increased by
9.1 percent year-on-year,
with a significant portion
allocated to loans primarily
financed by deposits.
Universal and
commercial banks held
the largest share of assets at 93.9 percent, while
bank loans reached P12.7
trillion, an 8.8 percent increase from the same
period in 2022, reflecting
broad-based lending support for key productive
sectors, including house holds.(bankero.com)
