The domestic claims of Other Financial Corporations (OFCs) posted double-digit growth in the first quarter of 2023, according to the latest data from the Bangko Sentral ng Pilipinas (BSP).
The data showed the claims of OFCs grew 12.2 percent to P8.221 trillion in January to March, from P7.327 trillion in the same period a year ago.
BSP said OFCs refers to institutional units providing financial services other than banks, non-banks with quasi-banking functions, nonstock savings and loan associations, and the central bank.
“This was due to higher claims on the depository corporations [DCs], the central government and the
other sectors. In particular, the OFCs’ claims on DCs expanded significantly, owing mainly to the growth in the sector’s deposits in banks and holdings of bank-issued equity shares,” the BSP said in a statement.
“Similarly, claims on the central government rose, following OFCs’ increased holdings of government securities. Likewise, the OFCs’ claims on other sectors, particularly the private sector, grew slightly, primarily on account of increased loans extended to the households and the nonfinancial corporations,” it added.
BSP data showed the claims on Other Sectors accounted for 51 percent of the OFCs followed by net claims on central government at 24.9 percent and depository corporations at 24.1 percent of the total.
Domestic claims on other sectors amounted to P4.194 trillion in the first quarter of 2023, a 2.24-percent growth from P4.102 trillion in the same period last year.
Net claims on central government reached P2.046 trillion in the January to March period this year, a 30.75 percent growth from the P1.565 trillion posted in January to March 2022.
The data also showed claims on depository corporations amounted to P1.981 trillion in the first quarter of 2023 or a 19.36 percent growth from the P1.66 trillion in the same period of 2022.
Meanwhile, the net foreign assets of the OFCs grew by 20.8 percent to P304.3 billion in the first quarter from last year’s P252 billion.
“The claims on nonresidents expanded mainly due to the OFCs’ increased investments in debt securities issued by nonresidents. The sector’s liabilities to nonresidents grew slightly due to higher reinsurance payables to nonresidents,” BSP said. “The expansion in the OFCs’ gross assets was funded mainly by its issuances of shares and other equity to other sectors.”
OFCs institutional units are comprised of non-money market funds of trust institutions, trust corporations, and investment companies, private and public insurance corporations, holding companies, government-owned or -controlled corporations engaged in financial intermediation, and other financial intermediaries and auxiliaries.
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