![OFCS domestic claims up 19.2% in Q2 2023](http://media.assettype.com/daily-tribune%2Fimport%2Fwp-content%2Fuploads%2F2023%2F10%2Fpeso-dollar-3-1.png?w=480&auto=format%2Ccompress&fit=max)
The domestic claims of the other financial corporations sub-sector (OFCS) increased in the second quarter of 2023 due to higher claims on the depository corporations, the different sectors, and the central government, Bangko Sentral ng Pilipinas said on Tuesday.
Based on preliminary results of BSP's Other Financial Corporations Survey, the domestic claims of the other financial corporations rose at an accelerated pace of 19.2 percent in the second quarter from the 12.2 percent year-on-year growth in the same period last year.
In particular, the domestic claims of other financial corporations reached P8,609.90 billion in the second quarter from P7,222.70 billion last year.
"The year-on-year growth in the other financial corporations' domestic claims in Q2 2023 was due to higher claims on the depository corporations, the other sectors, and the central government. In particular, the other financial corporations' claims on depository corporations expanded significantly owing to the sector's increased deposits in banks and holdings of bank-issued equity shares," BSP said.
"Likewise, the other financial corporations' claims on other sectors, particularly the private sector, grew due to the sector's higher investments in equity shares and debt securities issued by other nonfinancial corporations as well as the uptick in the loans extended to the households. Meanwhile, claims on the central government expanded due to the other financial corporations' increased holdings of government securities," the BSP added.
Net foreign assets up
In the second quarter of 2023, the net foreign assets of the OFCS increased by 51 percent year-on-year, surpassing the 20.8 percent growth seen in the first quarter of this year.
Specifically, the net foreign assets rose to P348.4 billion in the second quarter of 2023, up from P230.7 billion in the same period last year.
In the same period, the sector's other liabilities also grew compared to the previous year, primarily because of an increase in shares and equity issuances, along with the expansion of its insurance technical reserves.
On a quarterly basis, the domestic claims of other financial corporations experienced a slightly higher growth rate of 4.7 percent in the second quarter of 2023, compared to 4.5 percent in the previous quarter.
"This expansion was primarily driven by increased claims on the private sector, as well as a rise in claims on the central government and depository corporations. The higher claims on the private sector were mainly due to these financial corporations' increased investments in equity and debt securities issued by private non-financial corporations, as well as the amount of loans extended to households," BSP said.
"Additionally, their larger investments in government securities contributed to the increase in claims on the central government. The growth in claims on depository corporations resulted from higher deposits in banks and holdings of debt securities issued by other depository corporations," it added.
The net foreign assets of other financial corporations increased by 14.5 percent on a quarter-on-quarter basis, rising from P304.3 billion. This growth was driven by the sector's ongoing investments in foreign-issued debt securities, although the rate of growth was slightly slower than the 16.5 percent expansion observed in the previous quarter.
Meanwhile, the sector's other liabilities increased due to a rise in shares and other equity issuances and an expansion of its insurance technical reserves compared to the previous quarter.