Households and financial corporations remained to be net lenders of the economy, the Bangko Sentral ng Pilipinas' Q1 2022 Philippine Balance Sheet Approach report stated.

Meanwhile, the BSA said the non-financial corporations' net debtor position widened primarily on account of higher net liabilities to the rest of the world and other depository corporations.

"The NFCs' net debtor position to the ROW and the ODCs expanded because of the increase in cross-border borrowings and the contraction in the NFCs' deposits with ODCs, respectively," it said.

Furthermore, the general government's net liability position declined slightly in the first quarter mainly on account of higher deposit placements with the central bank and the ODCs, which tempered partly the growth in its financial liabilities.

It added, "the government's gross liabilities grew as a result of higher obligations to the central bank, the ODCs, and the ROW."

Gov't IOUs predominant

Liabilities were predominantly in the form of government securities. Households remained the top creditor in the domestic sector whose net financial position expanded during the period.

This expansion stemmed from higher net claims on the ODCs and other financial corporations.

The improvement in households' net lending position resulted mainly from higher investments in OFC-issued equity and investment fund shares, debt securities, and insurance, pension, and standardized guarantee schemes.

"The ODCs' net creditor position declined mainly on account of the increase in the ODCs' gross financial liabilities which more than offset the growth in its financial assets," the report added.

In particular, the growth in the ODCs' financial liabilities was underpinned by the rise in debt securities mostly held by the OFCs.

Meanwhile, the growth of ODCs' financial assets decelerated on account of the slide in the sector's deposits with the CB.

"The CB's net creditor position shrank because of the surge in the government's deposit placements with the BSP," the BSA added.

This development outpaced the growth in the BSP's claims in the form of loans.

Meanwhile, the CB's net claims on ROW increased primarily because of the increase in the peso equivalent of the reserve assets.