The banking sector’s total resources went up by 12.36 percent year-on-year in January to P13.84 trillion from P12.31 trillion, based on central bank data.

The universal and commercial banks, which control more than 90 percent of industry assets and capital, reported P12.48 trillion in total resources or an increase of 12.96 percent year-on-year from the previous’ P11.05 trillion.

The Bangko Sentral ng Pilipinas (BSP) numbers on total resources includes banks’ provisioning for potential losses. These data were gathered from banks’ submissions of consolidated statement of condition.

In January, the smaller thrift banks had total resources of P1.28 trillion, also higher compared to the same period in 2015 of P1.04 trillion.

The BSP supervises and monitors 41 universal and commercial banks and 64 thrift banks. There are 508 rural and cooperative banks also under BSP’s watch, and 99 non-bank financial institutions.

Data on the total resources for the non-banks and the rural banks are delayed in reporting. As of end-September 2016, non-banks’ total resources amounted to P3.11 trillion and P226 billion for rural banks including cooperative banks. Non-banks are investment houses, finance companies, investment firms, pawnshops and securities dealers/brokers.

The BSP has culled a cumulative P16.95 trillion in total resources for the entire domestic financial system which is still preliminary. This was higher by 10.49 percent than last year’s P15.34 trillion. At the end of 2016, the total resources of the banking industry increased by 11.08 percent to P13.875 trillion compared to the previous year’s P12.406 trillion on sustained loans and deposits growth despite market volatility pressures.

The big banks reported P12.545 trillion of total resources, higher than 2015’s P11.159 trillion by 12.42 percent. The thrift banking sector had total resources of P1.104 trillion at the end of 2016, slightly changed from the previous year’s P1.034 trilion or a difference of 6.76 percent.

Credit watcher Fitch Ratings noted that local banks’ “healthy” liquidity buffers on the back of sound economic fundamentals and stronger regulatory environment will continue to support industry growth and likely keep its stable and positive outlooks in the near term.

Source: http://business.mb.com.ph/2017/03/13/bank-resources-up-12-36-in-january/