Domestic liquidity (M3) grew by 7.3 percent year-on-year, amounting to around P18.9 billion in September 2025, according to preliminary data from the Bangko Sentral ng Pilipinas (BSP). This metric measures the amount of money circulating within the Philippine economy.

Meanwhile, the BSP noted M3 growth was faster in September, increasing by 1.2 percent month-on-month after adjusting for seasonal fluctuations. M3 serves as a broad measure of money supply that includes currency in circulation, bank deposits, and other financial assets that are easily convertible to cash.

Claims on the domestic sector, which include the combined liabilities of private and government entities to depository corporations, rose by 10.3 percent year-on-year in September, up from 9.8 percent in August.

Within this category, claims on the private sector expanded by 10.3 percent, slightly lower than the 11.1 percent recorded in August, driven mainly by continued growth in bank lending to non-financial private corporations and households.

Meanwhile, net claims on the central government climbed by 10.0 percent, accelerating from 6.1 percent in the previous month, largely due to higher government borrowings.

In external accounts, net foreign assets (NFA) in peso terms rose by 3.3 percent year-on-year in September, compared with 4.8 percent in August. NFA represents the difference between depository corporations’ claims on nonresidents and their liabilities to nonresidents.

The BSP’s own NFA slightly declined by 0.1 percent, while the banks’ NFA increased, reflecting larger holdings of foreign currency–denominated debt instruments.

The BSP said it will continue to ensure that domestic liquidity conditions remain consistent with its price and financial stability objectives amid ongoing global and domestic financial developments.