The financial landscape shifted significantly in the third quarter of 2025, as nonbank financial firms dramatically increased their domestic holdings. Preliminary data reveals a surge in claims across multiple sectors, signaling a dynamic period of growth and evolving financial relationships.
Total domestic claims held by these nonbank entities reached P11.024 trillion by the end of September, a substantial 11.62% increase compared to the same period the previous year. This growth wasn’t gradual; a further 2.59% rise was observed from the end of June, demonstrating accelerating momentum.
This expansion was fueled by increased lending and investment in key areas. Claims on depository corporations, the central government, and other resident sectors all contributed to the overall surge, painting a picture of broad-based financial activity.
The data originates from the Other Financial Corporations Survey, a comprehensive analytical tool that examines a wide range of financial institutions. This includes investment funds, intermediaries, insurance companies, pension funds, and lending institutions, providing a holistic view of the nonbank financial sector.
The largest portion of these domestic claims remained focused on other sectors – encompassing state and local governments, public corporations, and private businesses – but significant gains were also seen in lending to depository corporations and the central government.
Specifically, claims on depository corporations jumped by 18.63% year-on-year, reaching P3.071 trillion. This represents a considerable increase in funds flowing between nonbank entities and traditional banks, suggesting a deepening of financial interconnections.
Simultaneously, net claims on the central government rose by 16.71% to P2.949 trillion. This indicates increased investment in government-related instruments and potentially reflects government borrowing or financing activities.
Claims on other sectors also experienced healthy growth, increasing by 5.11% to P5.003 trillion. This broad category demonstrates consistent demand for financial services from both public and private entities.
Beyond domestic activity, nonbanks also significantly expanded their international financial position. Net foreign assets surged by an impressive 61.07% to P782.009 billion, indicating a growing presence in global markets.
This surge in foreign assets was driven by a substantial 48.5% increase in claims on nonresidents, reaching P944.384 billion. Simultaneously, liabilities to nonresidents saw a more moderate increase of 7.93%, resulting in a significantly improved net position.
Overall liabilities for the sector also grew, reaching P11.806 trillion – a 13.94% annual increase. This growth was primarily attributed to increased equity issuances and higher insurance technical reserves, suggesting a strengthening of capital bases.
These developments collectively illustrate a period of robust growth and evolving dynamics within the nonbank financial sector, with implications for the broader economy and financial stability.
