The Philippine financial system remained stable in the second half of 2025, continuing to support economic growth, according to the Bangko Sentral ng Pilipinas (BSP).
In its latest report, the BSP said both banks and non-bank financial institutions performed well during the period. BSP Governor Eli Remolona Jr. said these institutions play a key role in funding economic activities and that the central bank will continue supporting their growth while protecting consumers.
Bank assets rose by 8.9 percent to ₱29.9 trillion as of December 2025, slightly slower than the previous year but still faster than overall economic growth. Deposits also increased by 7.4 percent to ₱21.9 trillion, showing continued public trust in banks.
Lending grew by 11.7 percent to ₱17.1 trillion, helping boost spending and investments, including in priority sectors. Banks maintained manageable levels of bad loans, with the non-performing loan ratio at 3.1 percent.
The banking sector remained well-capitalized, with capital levels above required minimums. Liquidity also stayed strong, ensuring banks have enough funds to meet obligations.
Meanwhile, non-bank financial institutions expanded services such as credit and asset management, helping improve access to financial services.
The BSP said it will continue reforms to strengthen oversight, improve digital capabilities, and promote inclusive and sustainable finance.
