Second quarter domestic claims of other financial corporations decline marginally quarter-on-quarter
Based on the preliminary results of the Other Financial Corporations Survey, the domestic claims of the other financial corporations fell marginally by 0.03 percent quarter-on-quarter in the second quarter.
In particular, the sector’s domestic claims stood at ?9,306.6 billion in the second quarter from ?9,309.1 billion in the first quarter and ?8,633.5 billion in the second quarter of 2023.
The quarter-on-quarter decline in the other financial corporations’ domestic claims stemmed from the decrease in its claims on the other sectors and the central government.
The other financial corporations’ claims on the other sectors dropped as its holdings of equity shares issued by other non-financial corporations fell, although there was growth in the loans extended to households.
Likewise, the sector’s claims on the central government dipped as its holdings of government-issued debt securities declined.
The decrease in the other financial corporations’ domestic claims was tempered by the expansion in the sector’s claims on the depository corporations on account of the sector’s increased deposits with the banks.
The net foreign assets of the other financial corporations rose by 16.9 percent quarter-on-quarter to ?478.2 billion from ?409 billion as the sector’s investments in nonresident-issued debt securities and equity shares increased.
Meanwhile, the sector’s other liabilities increased mainly on account of the rise in its net other liabilities.
On a year-on-year basis, the other financial corporations’ domestic claims grew at a slower pace of 7.8 percent in the second quarter from the 12.9 percent year-on-year increase recorded in the first quarter.
The expansion is due mainly to the rise in the sector’s claims on the other sectors, the central government, and the depository corporations.
In particular, the other financial corporations’ claims on the other sectors grew as its holdings of equity shares issued by other non-financial corporations and the loans extended to the household sector increased.
Likewise, the sector’s claims on the central government grew, owing to the rise in its investments in government-issued debt securities. Moreover, the sector’s claims on the depository corporations expanded as its deposits with the banks increased.
The net foreign assets of the sector climbed by 37.2 percent year-on-year in the second quarter, faster than the 33.3 percent year-on-year growth posted in first quarter.
Meanwhile, the increase in the sector’s shares and other equity issuances and insurance technical reserves steered the rise in its other liabilities.
By component, claims on the other sectors, specifically the other non-financial corporations, comprised the bulk of the other financial corporations’ domestic claims in the second quarter. This is followed by the claims on the depository corporations and the central government. Bangko Sentral ng Pilipinas
