Bank resources up 20% to P9.238 T in July

MANILA, Philippines - Resources of the country’s banking industry grew further in July, the Bangko Sentral ng Pilipinas reported yesterday.

Data from the BSP showed the combined resources of all banks in the country, went up 20 percent to P9.238 trillion as of July from P7.726 trillion in the same period a year ago.

The level has been on an uptrend since the start of the year, underscoring the strength of the local banking industry.

The BSP earlier said the sound and stable banking system is a product of reforms and improvements from increasing bank capitalization.

Big banks accounted for 90 percent of the banking system’s total resources as of July. Resources of universal and commercial banks jumped 20 percent to P8.288 trillion as of July from P6.923 trillion a year ago.

Thrift banks saw their resources grow 24 percent to P760.7 billion from P612.4 billion, while those of rural banks stood at P190.1 billion as of July.

At the same time, non-banks, which refer to pawnshops, insurance firms, lending companies, investment houses and securities dealers and brokers, also recorded growth in their resources.

Resources of non-banks expanded six percent to P2.231 trillion as of July from P2.104 trillion last year.

This brought the total resources of the local financial system to P11.470 trillion as of July, 17 percent higher than the P9.830 trillion recorded in the same period last year.

Banks still accounted for majority of the financial system’s resources at 80.5 percent, while non-banks held the remaining 19.5 percent.