The Philippine financial sector's total resources went up by over 6 percent in July this year.
According to the Bangko Sentral ng Pilipinas (BSP), the total resources of banks and non-bank financial institutions reached P34.59 trillion, up from the P32.50 trillion in the same month last year.
Banks' total resources amounted to P28.60 trillion, higher than the P26.79 trillion in July 2024.
Broken down, the resources of universal and commercial banks rose to P26.66 trillion from P25.10 trillion, while thrift banks' resources also increased to P1.37 trillion.
Resources of digital banks amounted to P141.7 billion, while those of rural and cooperative banks reached P424.9 billion.
The total resources of non-banks, meanwhile, are at P5.99 trillion from P5.70 trillion in July 2024.
Non-banks include BSP-supervised investment houses, financing companies, investment companies, securities dealers or brokers, pawnshops, lending investors, non-stock savings and loan associations, credit card companies, government non-bank financial institutions, and authorized agent banks and forex corporations.
"The latest year-on-year growth in the total resources of the financial system is consistent with the GDP (gross domestic product) growth of 5.5 percent," Rizal Commercial Banking Corporation chief economist Michael Ricafort said in a Viber message.
"Going forward, further cut in Fed and BSP policy rates could reduce borrowing costs in the economy, thereby could make loans cheaper that increases demand for bank loans that, in turn, contribute to faster growth in banks’ total resources," he added.