Q2 2022 domestic claims of other financial corporations grew by 1.7 pct

Based on preliminary data on the Other Financial Corporations Survey (OFCS), the domestic claims of the OFCs increased slightly by 1.7 percent in Q2 2022 to ₱7,205.9 billion from ₱7,083.4 billion in Q2 2021 (Figure 1).^[1]

This developed on account of the OFCs’ higher claims on the private sector and on the central government.^[2]

In Q2 2022, the OFCs’ claims on the private sector expanded due primarily to the increase in loans extended to households as well as higher investments in equity securities issued by private nonfinancial corporations.

In addition, the growth in the domestic claims can be attributed to OFCs’ higher claims on the national government due to the sector’s increased holdings of government securities.

On the other hand, the OFCs’ claims on depository corporations declined in Q2 2022 compared with the same period last year, owing to the decline in the sector’s bank deposits and holdings of bank-issued debt securities.

Meanwhile, OFCs’ net foreign assets rose significantly in Q2 2022, largely on account of higher investments in debt and equity securities issued by nonresident entities.

The increase in OFCs’ assets was funded mainly by the sector’s issuances of shares and other equity. 

^[1]   The OFCS is a comprehensive measure of the claims and liabilities of the OFCs. OFCs refer to institutional units providing financial services other than banks, non-banks with quasi-banking functions, nonstock savings and loan associations, and the central bank. These institutional units are comprised of non-money market funds of trust institutions, trust corporations, and investment companies, private and public insurance corporations, holding companies, government-owned or -controlled corporations engaged in financial intermediation, and other financial intermediaries and auxiliaries.

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^[2] The private sector is composed of other nonfinancial corporations, and households and non-profit institutions serving households. The other nonfinancial corporations refer to private corporations and quasi-corporations whose principal activity is the production of market goods or nonfinancial services.