DOMESTIC CLAIMS of non-bank financial firms jumped by 15% year on year in the fourth quarter of 2023, data from the Bangko Sentral ng Pilipinas (BSP) showed.
Preliminary results of the BSP’s Other Financial Corporations Survey (OFCS) released on Tuesday showed domestic claims of nonbanks climbed to P9.05 trillion in the fourth quarter of 2023 from P7.88 trillion in the same period in 2022.
However, the pace of growth was slower than the 17.8% logged in the previous quarter.
Domestic claims also rose by 2.7% quarter on quarter (QoQ) from P8.82 trillion. This was faster than the 2.1% growth logged in the third quarter.
“The QoQ growth in the other financial corporations’ domestic claims stemmed from the rise in its claims on the other sectors, the central government, and the depository corporations,” the BSP said.
The OFCS is an analytical survey of the assets and liabilities of the nonbank financial sector.
It uses standardized report forms as required by the International Monetary Fund. These include individual financial statements from insurance firms, holding companies, government financial institutions, investment companies, and other financial intermediaries, as well as consolidated financial statements from trust institutions.
The BSP said the year-on-year growth in OFCs’ domestic claims “is attributable to the rise in the sector’s claims on the central government, the private sector, and the depository corporations. In particular, the sector’s claims on the central government expanded on account of higher holdings of government-issued debt securities.”
OFCs’ net claims on the central government jumped by 21.5% year on year to P2.27 trillion in the fourth quarter of 2023.
“Moreover, the other financial corporations’ claims on the private sector rose as its investments in equity shares issued by the other nonfinancial corporations and loans extended to the household sector grew,” it added.
The central bank also noted that the private sector’s claims on the depository corporations rose “amid the increase in its bank deposits and holdings of bank-issued securities.”
Claims on depository corporations surged by 20% annually to P2.28 trillion.
Meanwhile, claims on other sectors rose by 9.7% year on year to P4.51 trillion. Other sectors include the state and local government, public non-financial firms, and the private sector.
“By component, claims on the other sectors, specifically the other nonfinancial corporations, comprised the bulk of the other financial corporations’ domestic claims in the fourth quarter. This is followed by claims on depository corporations and the central government,” the BSP added.
Meanwhile, net foreign assets of OFCs surged by 48% to P388.656 billion in the fourth quarter from P262.662 billion a year earlier.
Claims of liabilities to non-residents grew by 23.1% year on year to P567.633 billion in the period, while liabilities to nonresidents declined by 9.8% to P178.977 billion. — Luisa Maria Jacinta C. Jocson
