Rate cuts boost financial resources

The Philippine financial systems resources extem's total panded by P2.28 trillion as of end-February, driven mainly by a double-digit jump in bank lending and lower interest rates, according to preliminary data from the Bangko Sentral ng Pilipinas (BSP).

- By DERCO ROSAL

The latest BSP data showed that the combined resources of banks and nonbank financial institutions (NBFIS) increased by over seven percent to P33.61 trillion as of February, from P31.33 trillion a year ago.

But month-on-month, total resources decreased by 0.15 percent from P33.66 trillion in January.

Financial institutions' resources include funds and assets such as deposits, capital, as well as bonds or debt securities.

According to the central bank, the banking system's resources jumped by P2.01 trillion, or nearly eight percent, to P27.78 trillion as of February, from P25.77 trillion in the same period a year earlier.

Big banks the 44 universal and commercial banks-accounted for over 77 percent of total resources, rising by almost eight percent annually to P25.96 trillion from P24.14 trillion in 2024.

Resources held by the 41 thrift banks contributed P1.17 trillion, up by over seven percent from last year's P1.09 trillion.