Nonbank firms’ domestic claims increase to P9.307 trillion in Q2

DOMESTIC CLAIMS of nonbank financial firms climbed year on year in the second quarter of the year, the Bangko Sentral ng Pilipinas (BSP) said.

Preliminary data from the BSP’s Other Financial Corporations Survey (OFCS) released late on Thursday showed domestic claims of nonbanks rose by 7.8% to P9.307 trillion in the second quarter from P8.63 trillion in the same period a year ago.

However, it slipped by 0.03% from the P9.309 trillion logged in the previous quarter.

“The said expansion is due mainly to the rise in the sector’s claims on the other sectors, the central government, and the depository corporations,” the BSP said in a statement.

“In particular, the other financial corporations’ claims on the other sectors grew as its holdings of equity shares issued by other nonfinancial corporations and the loans extended to the household sector increased.”

The OFCS is an analytical survey of the assets and liabilities of the OFC 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.

BSP data showed OFCs’ claims on other sectors rose by 5.5% annually to P4.6 trillion in the second quarter from P4.36 trillion. Quarter on quarter, it dipped by 0.5% from P4.62 trillion.

Other sectors include the state and local government, public nonfinancial firms, and the private sector.

By component, claims on the other sectors, specifically other nonfinancial firms, comprised the bulk of the OFCs’ domestic claims during the quarter, followed by claims on depository corporations and the central government. 

Other nonfinancial corporations refer to private corporations and quasi-corporations whose principal activity is the production of market goods or nonfinancial services.

The BSP also noted the rise in the sector’s claims on the central government, driven by investments in government-issued debt securities.

OFCs’ net claims on the central government increased by 11.1% year on year to P2.339 trillion from P2.1 trillion. However, it inched down by 0.4% from the P2.349 trillion in the previous quarter.

“Moreover, the sector’s claims on the depository corporations expanded as its deposits with the banks increased,” the central bank added.

Claims on depository corporations grew by 9.2% to P2.37 trillion in the second quarter from P2.17 trillion a year ago and went up by 1.3% from P2.34 trillion in the prior quarter.

Meanwhile, net foreign assets of OFCs jumped by 37.2% to P478.194 billion in the quarter ending June from P348.514 billion in the same period a year earlier. It also climbed by 16.9% from the previous quarter.

Claims of OFCs on nonresidents rose by 22.3% year on year to P635.089 billion. Liabilities to nonresidents declined by 8% to P156.896 billion. — Luisa Maria Jacinta C. Jocson