The Central Bank of the Philippines has published its Second Semester 2025 Report on the Philippine Financial System, showing that the banking sector and central bank supervised non-bank financial institutions remained resilient in the second half of 2025 and continued to support the economy. Banks recorded further growth in assets, deposits and lending, while asset quality, capital and liquidity indicators stayed above regulatory minimums. Total bank assets rose 8.9 percent year on year to PHP 29.9 trillion as of end-December 2025, deposits increased 7.4 percent to PHP 21.9 trillion, and lending grew 11.7 percent to PHP 17.1 trillion, including to priority and underserved sectors. The non-performing loan ratio stood at 3.1 percent and the loan-loss coverage ratio at 97.2 percent. The solo capital adequacy ratio was 15.8 percent and the consolidated ratio 16.2 percent, both above the 10.0 percent minimum. Universal and commercial banks also remained above the 100.0 percent liquidity minimums, with a solo liquidity coverage ratio of 172.3 percent and a solo net stable funding ratio of 132.7 percent. The report also notes continued expansion in trust and foreign currency deposit unit services and highlights ongoing reforms on governance, supervisory and digital capabilities, and inclusive and sustainable finance.
Central Bank of the Philippines 2026-05-06
Central Bank of the Philippines reports resilient second half 2025 financial system as bank assets reach PHP 29.9 trillion
The Central Bank of the Philippines’ Second Semester 2025 Report on the Philippine Financial System finds that banks and supervised non-bank financial institutions remained resilient, supporting the economy with growth in assets, deposits and lending and prudential metrics above regulatory minimums. As of end-December 2025, total bank assets reached PHP 29.9 trillion, deposits PHP 21.9 trillion and lending PHP 17.1 trillion, with a non-performing loan ratio of 3.1 percent and a consolidated capital adequacy ratio of 16.2 percent. The report also notes continued expansion in trust and foreign currency deposit unit services and ongoing reforms in governance, supervision, digital capabilities, and inclusive and sustainable finance.