DOMESTIC claims of other financial corporations (OFCs) rose in the third quarter (Q3) of 2023, the Bangko Sentral ng Pilipinas (BSP) reported on Thursday.
At P8,817.2 billion, the OFCs' domestic claims increased by 17.8 percent in the third quarter of 2023, up from P7.483 billion in the same quarter of 2022.
According to data from the Other Financial Corporations Survey (OFCS), the increase in OFCs' domestic claims was attributed to the expansion of its claims on the depository corporations (DCs), the private sector and the central government.
"In particular, the sector's claims on depository corporations expanded amid the increase in its bank deposits and holdings of bank-issued equity shares," the central bank said in a statement.
Similarly, other financial firms increased their holdings in the private sector, with investments in equity shares from nonfinancial corporations and loans to households on the rise.
Additionally, the sector's investments in government-issued debt securities led to an expansion of its claims on the central government.
The bulk, meanwhile, comprised the claims on other sectors, particularly the nonfinancial sector followed by claims on DCs and the central government.
The sector's net foreign assets increased at a slower pace, rising by 47.1 percent year on year in the third quarter of 2023 compared to the 51.0-percent year-on-year growth in the second quarter of 2023.
Moreover, the sector's other liabilities saw significant growth from the previous year, primarily due to increased issuances of shares, equity securities and insurance technical reserves.
From the previous quarter, other financial corporations experienced a slower growth rate of 2.4 percent in domestic claims in the third quarter of 2023, down from 4.7 percent.
This moderate growth was driven by the rise of its claims on the depository corporations, the central government and the other sectors.
"The sector's claims on the depository corporations rose amid the increase in its deposits with banks and holdings of bank-issued debt securities," the BSP said.
Likewise, the increase in holdings of government-issued debt securities by other financial corporations played a role in the sector's heightened claims on the central government.
The claims of other financial corporations on various sectors grew as the sector issued more loans to households and increased its ownership of equity shares in nonfinancial corporations.
The net foreign assets of other financial corporations increased by 6.1 percent from P348.4 billion to P369.6 billion quarter on quarter, driven by the sector's higher investment in foreign-issued debt securities.
However, this growth was less than the 14.5-percent expansion in the previous quarter.
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