Phl banks’ assets breach P30-T mark

The total assets of the Philippine banking system expanded by more than 11 percent in May, surpassing the ₱30-trillion mark for the first time, according to data released by the Bangko Sentral ng Pilipinas (BSP).

BSP figures showed total bank assets reached ₱30.4 trillion in May, up from ₱27.3 trillion in the same month last year. The latest figure also exceeded the ₱30.1 trillion recorded in April.

Union Bank of the Philippines Chief Economist Ruben Carlo Asuncion said the sustained growth reflects healthy lending activity, steady deposit inflows and higher investment holdings. He added that resilient domestic demand and ample liquidity continue to support the banking sector.

“The fact that the banking system’s assets have surpassed the ₱30-trillion mark highlights the sector’s capacity to support economic activity through credit creation and financial intermediation,” Asuncion said.

He noted that the banking industry’s continued expansion remains crucial in financing household consumption, business investments and economic growth.

Despite the strong performance, Asuncion said geopolitical tensions in the Middle East could pose risks to the sector’s outlook. He warned that prolonged conflict may keep global oil prices elevated, reignite inflationary pressures and increase volatility in financial markets.

Still, he said domestic liquidity remains sufficient, monetary conditions continue to support growth and credit demand has stayed resilient. Barring a severe external shock, Asuncion expects the banking sector’s balance sheet to continue expanding in the coming months, although with greater sensitivity to global developments.