Nonbanks’ domestic claims rise in Q4

DOMESTIC CLAIMS of nonbank financial firms rose by 12.6% year on year in the fourth quarter, preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed.

The BSP’s Other Financial Corporations Survey (OFCS) showed domestic claims of nonbanks increased to P10.1 trillion in the October-December period from P8.94 trillion a year prior.

Quarter on quarter, domestic claims also went up by 2% from P9.87 trillion.

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 like individual financial statements from nonbank companies — which include insurance firms, holding companies, government financial institutions, investment companies, and other financial intermediaries — as well as consolidated financial statements from trust institutions.

The central bank said domestic claims grew at a faster annual pace in the period versus the third quarter’s 11.9% amid “higher claims on depository corporations, other sectors, and the central government.”

Claims on other sectors accounted for the bulk (46.9%) of domestic claims in the fourth quarter, followed by claims on depository corporations (28.7%) and net claims on the central government (24.4%).

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

OFCs’ claims on other sectors amounted to P4.73 trillion in the quarter ending December, up by 7.8% from P4.39 trillion a year ago.

Nonbanks’ claims on the private sector likewise rose by 7.8% to P4.71 trillion from P4.37 trillion year on year.

“Claims on other sectors also expanded due to higher holdings of equity shares issued by other nonfinancial corporations and more loans extended to households. Moreover, claims on the central government rose due to higher investments in government-issued debt securities.”

In the fourth quarter, net claims on the central government rose by 8.1% year on year to P2.46 trillion from P2.27 trillion.

Claims on depository corporations surged by 26.4% to P2.89 trillion in the last quarter of the year from P2.28 trillion a year prior.

“The increase in claims on depository corporations was due to higher deposits with the banks,” it added.

Meanwhile, net foreign assets of OFCs jumped by 20.6% to P465.95 billion in the fourth quarter from P386.32 billion a year earlier.

“Moreover, the sector’s other liabilities rose by 13% year on year, driven mainly by higher shares and other equity issuances,” the central bank said.

Claims of OFCs on nonresidents climbed by 11.8% to P629.61 billion from P562.23 billion.

“Since its inception, the OFCS has recorded significant growth in the assets of other financial corporations,” the BSP said. “The sector’s domestic claims expanded by 100.2% in the fourth quarter of 2024 from the initial recorded amount of P5.03 trillion in the first quarter of 2017, reflecting its growing importance to the economy.” — Luisa Maria Jacinta C. Jocson