OFC domestic claims hit P7.28 T in 2021 (Sabong News)
Author
Lee C. Chipongian
Date
APRIL 29 2022
Other financial corporations (OFCs) reported that domestic claims in 2021 reached P7.279 trillion, five percent higher compared with P6.929 trillion in 2020, the Bangko Sentral ng Pilipinas’ (BSP) said.
On Friday, April 29, the BSP said that its latest Other Financial Corporations Survey (OFCS) showed that the increase was on account of “higher claims on the private sector and net claims on the central government (CG).”
The OFCS is a comprehensive measure of OFCs’ claims and liabilities. OFCs include trust institutions’ non-money market funds, trust corporations, and investment companies, private and public insurance corporations, holding companies, among others.
Preliminary data showed that of the total OFCs claims, the private sector claims reached P4.023 trillion last year, up 13.8 percent year-on-year or from P3.536 trillion. Claims from the private sector grew due to higher investments in equity securities issued by private non-financial corporations and loans extended to households, said the BSP. Private sector is composed of other nonfinancial corporation and households, plus non-profit institutions serving households.
The net claims on the CG also went up by by 1.8 percent to P1.679 trillion from P1.65 trillion because of OFCs’ higher holdings of government securities.
The BSP said OFCs’ claims on depository corporations declined by 9.7 percent to P1.558 trillion versus P1.726 trillion in 2020 due to lower deposits in banks and decreased holdings of bank-issued debt securities.
Meantime, OFC’s net foreign assets in 2021 posted a high growth of 78.6 percent to P263.2 billion from P147.3 billion, driven by more claims on nonresidents’ investments in debt and equity securities.
OFCs’ assets was funded by issuances of shares and other equity. The BSP noted that the increase in equity issuances, coupled with the rise in OFCs’ insurance technical reserves, led to a 6.6 percent expansion in other liabilities which amounted to P7.542 trillion end-2021 versus P7.077 trillion in 2020.
