Other financial corporations’ assets rise to PHP 10.7 trillion

The domestic claims or assets of other financial corporations (OFCs) in the Philippines rose slightly by 0.1 percent quarter-on-quarter and 16.7 percent year-on-year, reaching PHP 10.7 trillion in the second quarter of 2025.

The Bangko Sentral ng Pilipinas (BSP) reported that the modest quarterly increase was mainly driven by larger investments in equity shares issued by other nonfinancial corporations, higher holdings of government securities, and a rise in loans extended to households.

These gains, however, were partly offset by a decline in OFCs’ holdings of bank-issued debt securities.

The BSP noted that the sector’s total liabilities also grew, reaching PHP 11.4 trillion in the same period, largely due to the increase in issued shares of stocks and higher insurance technical reserves.

Insurance technical reserves refer to funds set aside by insurance companies to cover future insurance liabilities.

Meanwhile, OFCs’ net foreign assets climbed to PHP 0.7 trillion in the second quarter, driven by higher claims on nonresidents.

The BSP explained that the OFCs sector includes a diverse set of institutions such as non-money market investment funds, other financial intermediaries, financial auxiliaries, captive financial institutions and money lenders, insurance corporations, and pension funds.

These entities serve a vital role in the Philippine financial system, complementing banks and other formal financial intermediaries by channeling funds and providing risk management services.

The BSP said the Other Financial Corporations Survey (OFCS) provides a more comprehensive picture of financial activity in the country, supporting its monetary and financial stability mandates.

The central bank added that the data reflect the continued expansion of the financial sector and underscore the growing importance of nonbank financial institutions in supporting domestic investment and consumption.

Private corporations and quasi-corporations engaged in the production of market goods and nonfinancial services were the main issuers of equity shares purchased by OFCs.

The BSP maintains that the monitoring of OFCs through the OFCS enhances policy formulation and risk assessment by capturing data from entities outside the traditional banking system.