The Bangko Sentral ng Pilipinas (BSP) said Filipinos are benefiting from a continuously expanding financial system, as highlighted in its report on the Philippine Financial System for the second half of 2024.
It said the continued expansion in key balance sheet and income accounts enables BSP-supervised financial institutions (BSFIs) to continuously deliver essential financial services to businesses and households, including marginalized sectors, promoting economic growth.
Data from the BSP showed that as of December 2024, the total assets of the Philippine banking system, which constituted 83.2 percent of the total financial system, grew by 9.0 percent year-on-year to P27.4 trillion.
This increased asset level aligns with the country’s strong macroeconomic fundamentals and the upbeat outlook of the industry, enabling banks to expand their loan and investment portfolios, the BSP said.
It said the expansion in bank operations is also supported by a wider network and a growth in electronic platforms—with the number of bank offices reaching 13,384, including 474 head offices and 12,910 branches and branch-lite units.
Bank lending also grew at a faster pace due to improved economic conditions and strong domestic demand amid an optimistic outlook. Total loans grew by 10.6 percent to P15.3 trillion in December 2024, serving businesses and households, including the marginalized sectors.
The solid performance of banks, including trust and foreign currency deposit unit operations, as well as non-banks is bolstered by a wider network and growing electronic platforms, the BSP said.
It said these advancements enhance customer experience and increase accessibility of financial services, fostering a more inclusive financial system for all Filipinos.
“BSP’s policy reforms and collaboration, alongside improving macroeconomic and industry outlook, have enabled supervised entities to expand and meet Filipinos’ evolving financial needs. These efforts support a more resilient financial system,” BSP Governor Eli Remolona, Jr. said.
The report also features thematic box articles on financial supervision, particularly an enhanced surveillance mechanism for money laundering/ terrorism and proliferation financing risks, improved supervisory assessment framework for money service businesses and pawnshops, a roadmap for cyber resilience and the lifting of the moratorium on the establishment of digital banks.
The BSP said it would continue to pursue progressive financial reforms and stay committed to working closely with development partners, counterpart agencies, the private sector and other stakeholders. These initiatives support a resilient, dynamic, inclusive and sustainable financial system for the Philippines, it said.
