THE Bangko Sentral ng Pilipinas (BSP) reported over the weekend that the domestic claims of other financial corporations (OFCs) grew 7.3 percent in the first three months of the year.
According to their recent OFC Survey (OFCS), these non-bank financial institutions had domestic claims of P7.33 trillion in the first quarter of 2022 from the P6.83 billion in the same period last year.
The BSP said this growth was brought about by higher claims on the private sector and net claims on the central government.
OFCs refer to institutional units providing financial services other than banks, non-banks with quasi-banking functions, non-stock savings and loan associations and the central bank.
These 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.
In the first quarter of 2022, the BSP said OFCs’ claims on the private sector rose due to the sector’s higher investments in equity securities issued by private nonfinancial corporations as well as more loans extended to households.
The growth in domestic claims can also be attributed to OFCs’ higher claims on the national government as evidenced by the sector’s increased holdings of government securities.
On the other hand, the OFCs’ claims on depository corporations declined in the first quarter of 2022 compared to the same period last year.
The BSP attributed this mainly to the sector’s lower bank deposits and decreased holdings of debt securities issued by banks.
Meanwhile, OFCs recorded higher net foreign assets in the first quarter of the year, largely on account of increased investments in debt and equity securities issued by nonresident entities.
“The expansion in the OFCs’ assets was funded primarily by their issuances of shares and other equity,” the BSP said.