By Katherine K. Chan, Reporter
THE TOTAL RESOURCES of the Philippine economic system climbed by 8.08% 12 months on 12 months to almost P37 trillion at the top of 2025, preliminary central bank data showed.
Resources held by banks and nonbank financial institutions (NBFIs) rose to P36.932 trillion last 12 months from P34.172 trillion in 2024, in accordance with data released by the Bangko Sentral ng Pilipinas (BSP).
These resources include funds and assets resembling deposits, capital, and bonds or debt securities.
Banks’ resources topped P30 trillion in 2025, because it jumped by 8.67% to P30.706 trillion from P28.256 trillion in 2024.
Of the full, universal and business banks had the majority of the sector’s resources at P28.572 trillion, up 8.07% from P26.438 trillion within the previous 12 months.
Thrift banks’ resources increased by 24.43% to P1.456 trillion at end-2025 from P1.17 trillion at end-2024.
Digital banks’ resources also surged by an annual 41.98% to P172.5 billion at end-2025 from P121.5 billion previously.
Latest available data also showed that resources of rural and cooperative banks stood at P505.9 billion as of end-September 2025. This was 4.02% lower than the P527.1 billion seen for the whole 2024.
Alternatively, nonbanks had P6.226 trillion price of resources in the primary nine months of 2025, exceeding 2024’s total of P5.916 trillion by 5.25%.
There was no available end-2025 data for rural banks and nonbanks.
Nonbanks include investment houses, finance corporations, security dealers, pawnshops, and lending corporations.
Institutions resembling nonstock savings and loan associations, bank card corporations, private insurance firms, the Social Security System, and the Government Service Insurance System are also considered NBFIs.
Michael L. Ricafort, chief economist at Rizal Business Banking Corp., said the sustained growth in bank lending and deposits in addition to the industry’s continued profitability boosted the full-year financial resources.
“This is sort of twice the economic growth of 4.4% in 2025 (and was) again largely because of the continued double-digit growth in bank loans, sustained growth in bank deposits, continued net income growth of banks, that are amongst probably the most profitable industries within the country consistently for a few years,” he said in a Viber message.
Since May 2024, bank lending has grown at a double-digit pace monthly. The streak was only broken in December last 12 months, when banks’ loan growth eased to a 22-month low of 9.2%.
Meanwhile, the newest available BSP data showed that bank deposits rose by 7.58% 12 months on 12 months to P21.066 trillion as of September from P19.581 trillion previously.
Recent policy easing also allowed banks to learn from higher trading gains and investment earnings, Mr. Ricafort noted.
Since August 2024, the central bank has up to now reduced key borrowing costs by a complete of 200 basis points (bps) to its lowest in over three years at 4.5%.
Alternatively, the US Federal Reserve’s benchmark rate currently stands at 3.5%-3.75% range following a cumulative 175 bps in cuts since September 2024.
Jonathan L. Ravelas, a senior adviser at Reyes Tacandong & Co., also noted that the rise of banks and nonbanks’ financial resources last 12 months “reflected resilience and confidence within the system.”
Mr. Ravelas said resources’ growth this 12 months will probably be driven by banks’ lending to priority sectors resembling infrastructure and consumption in addition to the impact of capital market activity, trust funds and insurance on NBFIs.
“In 2026, growth will likely be more measured but still solid, with banks specializing in targeted lending to priority sectors like infrastructure and consumption, while nonbanks profit from capital market activity, trust funds, and insurance,” he said via Viber. “The story this 12 months shifts from rapid accumulation to disciplined, higher‑quality growth.”
Meanwhile, Mr. Ricafort said further monetary policy easing would “result in higher trading gains and other investment gains, in addition to greater demand for loans, that will again be the key growth drivers for total assets and resources of the banking system and the general economic system.”
The Monetary Board is widely expected to trim the important thing policy rate by one other 25 bps at its meeting on Thursday to bring it to 4.25%, based on a BusinessWorld poll of 16 analysts.