Resources in the Philippine financial system rose to a record ₱38.56 trillion at the end of August, snapping a single-month decline on the back of resilient bank lending and pre-emptive borrowing by corporate clients.
Preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed total assets expanded 11.2 percent from ₱34.69 trillion a year earlier, a swift recovery from July, when system resources contracted to ₱38.09 trillion from June’s previous peak of ₱38.39 trillion.
Broken down, total resources held by the banking sector rose to ₱32.17 trillion as of end-August 2026, up from ₱31.70 trillion in July and ₱28.59 trillion in August 2025.
Based on BSP data, the banking sector continues to dominate the financial landscape, accounting for approximately 83.4 percent of total system resources. These resources encompass deposits, capital, and debt securities.
As of end-August, total resources of big banks, or universal and commercial banks (U/KBs), grew to ₱29.78 trillion, up from ₱29.35 trillion reported in July.
Thrift banks’ resources increased to ₱1.54 trillion, continuing an upward trajectory from ₱1.52 trillion in the previous month.
Digital banks maintained their steady expansion, with resources reaching ₱225.2 billion in August, up from ₱213.6 billion in July.
Resources of rural and cooperative banks (RCBs) stood at ₱623.9 billion.
Non-bank financial institutions (NBFIs)—which include entities such as investment houses, pawnshops, and insurance companies—held ₱6.39 trillion in resources, up 4.7 percent from ₱6.11 trillion in August 2025.
NBFI resources accounted for roughly 16.6 percent of the financial system’s total. The reported figures for NBFIs reflected updated preliminary data as of end-March 2026.
According to the BSP, the non-banking sector includes a variety of entities such as investment houses, financing companies, investment companies, securities dealers/brokers, pawnshops, lending investors, non-stock savings and loan associations (NSSLAs), credit card firms, and state-run insurers, including the Social Security System (SSS) and the Government Service Insurance System (GSIS), along with private insurance companies.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said that the rebound in the financial system’s total resources was “very much consistent with the growth in bank loans as seen in recent months.”
Lending by big banks in the Philippines accelerated by 11 percent in August, sustaining the 10.4 percent pickup recorded in July. This reflected continued credit demand from businesses even as household borrowing growth continued to soften.
Ricafort said the lending pickup was because some borrowers opted to lock in loans before interest rates increased further. Consumers also frontloaded their purchases of goods before prices surged further amid the Middle East war.
Looking ahead, Ricafort said a super El Niño could stoke inflation until early 2027. Paired with elevated borrowing costs, this could present challenges for the Philippine economy and temper growth in the financial system’s total resources.