Philippine financial system's resources grow to ₱33.78-T on expanded bank lending | Business 360

Summary

The Philippine economy shows positive signs as financial system resources continue to grow, reaching nearly 34 trillion pesos in 2024, a nearly 8% increase from the previous year. This growth is driven by increased bank lending, which allows more businesses and individuals access to funds. A growing financial system supports investments, loans, and business expansion, contributing to job creation, consumer spending, and overall economic growth. The data, from the Bank of Central Filipinas (BSP), highlights the strengthening financial sector's vital role in the country's economic progress.

Takeaways

• 😀 Philippine financial system resources are projected to grow nearly 8% in 2024, reaching almost 34 trillion pesos.
• 😀 This growth is higher than the 31.34 trillion pesos recorded in 2023.
• 😀 Financial system resources include deposits, capital, bonds, and debt securities.
• 😀 These resources play a key role in funding businesses and the overall economy.
• 😀 Michael Ricord, chief economist at RCBC, attributes this growth to increased bank lending.
• 😀 More access to funds means more businesses and individuals are receiving loans.
• 😀 A growing financial system results in more money circulating within the economy.
• 😀 The circulation of more money helps support loans, investments, and business expansion.
• 😀 Increased business activity and financial growth can lead to more job creation.
• 😀 More job creation and economic activity can help boost consumer spending, further driving economic growth.

Q & A

What is the current growth rate of the Philippine financial system's resources in 2024?

The Philippine financial system's resources are growing at nearly 8% in 2024.

What is the total value of the Philippine financial system’s resources in 2024?

In 2024, the total value of the Philippine financial system’s resources is almost 34 trillion pesos.

How does the growth in financial system resources in 2024 compare to 2023?

The growth in 2024 is higher than the 31.34 trillion pesos recorded in 2023.

What are some components that make up the financial system’s resources?

Financial system resources include deposits, capital, bonds, and debt securities.

Why are financial system resources important for the economy?

These resources help fund businesses and the economy, supporting economic activities such as loans, investments, and business expansions.

How does increased bank lending contribute to economic growth?

Increased bank lending allows more businesses and individuals to access funds, stimulating economic activity and growth.

What does a growing financial system mean for the economy?

A growing financial system means more money circulating in the economy, supporting loans, investments, business expansions, and ultimately driving economic growth.

What role does job creation play in economic growth as mentioned in the script?

Job creation contributes to economic growth by increasing consumer spending and expanding economic activities.

How does the expansion of the financial system influence consumer spending?

The expansion of the financial system boosts consumer spending by providing more access to funds through loans and investments.

Who is Michael Rickord, and what is his perspective on the growth of the financial system?

Michael Rickord is the chief economist at RCBC (Rizal Commercial Banking Corporation), and he believes that the growth of the financial system is driven by increased bank lending, leading to more access to funds for businesses and individuals.