The domestic assets of Other Financial Corporations (OFCs) climbed to P10.6 trillion at the end of the first quarter of 2025, according to preliminary data from the Bangko Sentral ng Pilipinas (BSP), underscoring the sector’s growing role in the financial system.

This marked a 4.9 percent increase from the previous quarter’s P10.1 trillion and a robust 14.6 percent jump from P9.2 trillion recorded in the same period last year.

OFCs refer to a broad group of non-bank financial institutions, including non-money market investment funds, financial auxiliaries, other intermediaries excluding insurers and pension funds, captive finance firms, money lenders, insurance corporations, and pension funds.

On the liabilities side, the sector posted P11.2 trillion in Q1 2025, reflecting a 6.2 percent rise from P10.5 trillion in the previous quarter and a 16.2 percent increase from P9.6 trillion a year earlier. These liabilities primarily comprise issued shares, bonds, other debt instruments, and loans sourced from various domestic sectors.

The OFC sector’s expanding asset base was driven by its significant claims across the domestic financial system. OFCs held P3.1 trillion in claims on depository corporations, mostly in the form of bank deposits, and P2.7 trillion in claims on the central government, mainly invested in government securities. An additional P4.8 trillion in claims were made on other sectors, including equities in non-financial corporations and loans extended to households.

Meanwhile, claims on nonresidents stood at P0.8 trillion, while liabilities to foreign entities amounted to P0.2 trillion. This resulted in a net foreign asset position of P0.6 trillion for the OFC sector as of end-March 2025 – up by 34.1 percent quarter-on-quarter and a notable 52.8 percent year-on-year.

The consistent growth in both assets and liabilities signals heightened participation of OFCs in domestic capital markets and lending activity, further supporting economic liquidity and financial intermediation.