PH financial system resilient in H2 2025 — BSP

The Philippine financial system remained resilient in the second half of 2025 as banks assets grew faster than economic growth, although at a slower pace than the year before, the Bangko Sentral ng Pilipinas (BSP) reported.

Total assets of banks in the country grew 8.9% to P29.9 trillion as of December 2025, slower than the 9.0% in the previous year, but still faster than the economic growth. The gross domestic product expanded by 5.4% in the third quarter of 2025, and 4.0% in the fourth quarter.

Deposits increased 7.4% to P21.9 trillion, while bank lending climbed 11.7% to P17.1 trillion to bring the non-performing loan (NPL) ratio to 3.1%. The loan-loss coverage ratio stood at 97.2%.

The “solo” capital adequacy ratio (CAR) was recorded at 15.8%, while the “consolidated” CAR stood at 16.2%, both higher than the BSP’s 10% minimum requirement.

In terms of liquidity, the coverage ratio of universal and commercial banks was posted at 172.3%, while the “solo net stable funding ratio was at 132.7%.

“Banks and non-bank financial institutions play a vital role in mobilizing funds to different economic activities,” BSP governor Eli Remolona Jr. said in an emailed statement.

“The BSP remains committed to fostering a regulatory environment that supports their continued growth and resilience while advancing the interest of Filipino financial consumers,” he added.

The central bank last month hiked key policy rates by 25 basis points to mark the first tightening in over two years, as the conflict in Middle East drove inflation faster. Inflation is now expected to breach the 4% “tolerance ceiling” both in 2026 and 2027. — RSJ, GMA News