In a statement, the central bank said the general government's net financial liability also rose by 7.7% to P9.7 trillion, reflecting its reduced deposits with the BSP as the funds were disbursed to local government and used for interest payments.
Similarly, the non-financial corporations (i.e. firms other than banks) saw a 4.8% rise in net financial liabilities, reaching P9.1 trillion due to higher loans from banks and overseas lenders.
The central bank noted that local households also experienced a 5.4% increase in net financial assets, to reach P13.4 trillion, supported by higher bank deposits and investments.
On the other hand, the central bank's net financial asset position improved significantly, increasing by 12.1% to P891.6 billion, bolstered by a rise in net external assets and gross international reserves.
Overall, the financial system's growth highlights robust borrowing activities and strategic financial management across sectors, the central bank said.
