Domestic claims of OFCs up by 3.3 percent in Q3 2022

Based on preliminary results of the Other Financial Corporations Survey (OFCS), the domestic claims of the OFCs grew by 3.3 percent in Q3 2022 to ₱7,493.8 billion from ₱7,256.1 billion in Q3 2021 (Figure 1).[1]

The OFCs’ domestic claims increased during the quarter due to their higher claims on the central government and the other sectors (Figure 2).[2]

In particular, the OFCs’ claims on the central government rose, following the increase in their holdings of government securities. Similarly, the OFCs’ claims on the other sectors grew slightly, owing to the increase in loans extended to the private sector, i.e., the households and nonfinancial corporations.

Meanwhile, the OFCs’ claims on depository corporations declined in Q3 2022 from the level in the same period last year due to the decrease in their holdings of bank-issued debt securities and bank deposits.

By component, claims on the other sectors, particularly the private sector, comprised the bulk of the OFCs’ domestic claims, followed by claims on the central government and depository corporations.

The OFCs’ net foreign assets increased significantly by 28.4 percent to ₱246.9 billion in Q3 2022 from ₱192.3 billion in Q3 2021, largely on account of the expansion in its investments in debt as well as shares and other equity securities issued by non-resident entities.

The expansion in the OFCs’ gross assets was funded mainly by its issuances of shares and other equity to other sectors.

[1]   The OFCS is a comprehensive measure of the claims and liabilities of the OFCs. OFCs refer to institutional units providing financial services other than banks, non-banks with quasi-banking functions, nonstock savings and loan associations, and the central bank. These institutional units are comprised of non-money market funds of trust institutions, trust corporations, and investment companies, private and public insurance corporations, holding companies, government-owned or -controlled corporations engaged in financial intermediation, and other financial intermediaries and auxiliaries.

[2] Other Sectors cover the following: (a) state and local government, (b) public nonfinancial corporations, and (c) private sector. The private sector is composed of other nonfinancial corporations, and households and non-profit institutions serving households. The other nonfinancial corporations refer to private corporations and quasi-corporations whose principal activity is the production of market goods or nonfinancial services.