BASED on the preliminary results of the Other Financial Corporations Survey (OFCS), the domestic claims of other financial corporations increased by 2.0 percent quarter-on-quarter (q-o-q) in Q4 2024.[1] In particular, the sector’s domestic claims rose to ₱10,070.9 billion in Q4 2024, up from ₱9,870.4 billion in Q3 2024 and ₱8,942.3 billion in Q4 2023.
The q-o-q growth in the domestic claims of other financial corporations was primarily driven by an increase in their claims on depository corporations, particularly in the form of bank deposits.[2] However, the growth in the sector’s domestic claims was tempered by a decrease in its claims on the central government and other sectors.[3] Claims on the central government declined due to lower holdings of government-issued debt securities. Likewise, claims on other sectors fell as the reduction in investments in equity shares issued by other nonfinancial corporations more than offset the increase in loans extended to households.
The net foreign assets of other financial corporations dropped by 4.2 percent q-o-q to ₱465.9 billion in Q4 2024 from ₱486.4 billion in Q3 2024. This decline was due primarily to a decrease in deposits with nonresident banks and investments in nonresident-issued debt securities. Meanwhile, the sector’s other liabilities increased by 1.7 percent q-o-q to ₱10,536.8 billion in Q4 2024, mainly due to the expansion in shares and other equity issuances.[4]
On a year-on-year (y-o-y) basis, the domestic claims of other financial corporations grew at a faster pace of 12.6 percent in Q4 2024 from the 11.9 percent increase in Q3 2024. This expansion was due mainly to higher claims on depository corporations, other sectors, and the central government.
The increase in claims on depository corporations was due to higher deposits with the banks. Claims on other sectors also expanded due to higher holdings of equity shares issued by other nonfinancial corporations and more loans extended to households. Moreover, claims on the central government rose due to higher investments in government-issued debt securities.
The net foreign assets of the other financial corporations climbed by 20.6 percent y-o-y in Q4 2024, slower than the 31.1 percent growth in Q3 2024. Moreover, the sector’s other liabilities rose by 13.0 percent y-o-y, driven mainly by higher shares and other equity issuances.
By component, claims on other sectors, specifically other nonfinancial corporations, comprised the bulk of the other financial corporations’ domestic claims in Q4 2024 (Figure 2). This is followed by claims on depository corporations and the central government.
Since its inception, the OFCS has recorded significant growth in the assets of other financial corporations.[5] The sector’s domestic claims expanded by 100.2 percent in Q4 2024 from the initial recorded amount of P5,030.9 billion in Q1 2017, reflecting its growing importance to the economy. Furthermore, the sector’s other liabilities grew by 109.8 percent in Q4 2024 from ₱5,022.4 billion in Q1 2017, driven by increased shares and other equity issuances. PR