report on economic and financial developments · report on economic and financial developments...
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Report on Economic and Financial Developments
EXECUTIVE SUMMARY 1
A. REAL SECTOR
AGGREGATE SUPPLY AND DEMAND 10
LABOR AND EMPLOYMENT 15
B. FISCAL SECTOR
NATIONAL GOVERNMENT CASH OPERATIONS 17
C. MONETARY SECTOR
PRICES 18
DOMESTIC LIQUIDITY 22
DOMESTIC INTEREST RATES 23
MONETARY POLICY DEVELOPMENTS 25
D. FINANCIAL SECTOR
BANKING SYSTEM 26
BANKING POLICIES 35
CAPITAL MARKET REFORMS 36
STOCK MARKET 36
BOND MARKET 39
CREDIT RISK ASSESSMENT 43
PAYMENTS AND SETTLEMENTS SYSTEM 46
E. EXTERNAL SECTOR
BALANCE OF PAYMENTS 47
INTERNATIONAL RESERVES 54
EXCHANGE RATE 55
EXTERNAL DEBT 58
FOREIGN INTEREST RATES 60
GLOBAL ECONOMIC DEVELOPMENTS 62
F. FINANCIAL CONDITION OF THE BSP
BALANCE SHEET 65
INCOME STATEMENT 67
G. CHALLENGES AND FUTURE POLICY DIRECTIONS 68
ANNEXES 73
STATISTICAL TABLES
Bangko Sentral ng Pilipinas | 1
Report on Economic and Financial Developments
First Quarter 2015
EXECUTIVE SUMMARY
A. Key Economic Developments
The Philippine economy sustained a positive,
albeit more moderate, growth of 5.2 percent
in Q1 2015. This was lower than the
quarter-ago and year-ago expansion rates of
6.6 percent and 5.6 percent, respectively.
The more moderate growth during the review
period was attributed to the
slower-than-programmed pace of
government spending and the slowdown in
exports. Nevertheless, broad-based
expansion was observed across various
sectors of the economy.
The lower-than-expected growth was
accompanied by a further easing in headline
inflation, which averaged 2.4 percent in
Q1 2015. At this rate, inflation remained
within the Government’s target range of
2-4 percent for 2015. Lower food inflation,
due to ample domestic supply, as well as
non-food inflation, owing to the drop in oil
prices, resulted in easing price pressures.
Official core inflation likewise decreased
further to 2.5 percent during the quarter in
review.
Meanwhile, domestic liquidity continued to
grow in Q1 2015 albeit at a slower rate than
in the previous quarter. The increase in
money supply was driven largely by sustained
expansion in credits extended to the private
sector. This is consistent with the double-digit
growth in bank lending channeled mainly to
the productive sectors of the economy.
Against this backdrop, the BSP decided to
maintain key policy interest rates during the
review quarter. The interest rates on term
RRPs, RPs, and SDAs were also kept steady
while the reserve requirement ratios were
left unchanged as well. The Monetary Board’s
(MB) decisions during the quarter were based
on the assessment that the inflation
environment continued to be manageable.
At the same time, the MB noted that the risk
to the inflation outlook was still seen as being
broadly balanced.
The cash operations of the National
Government (NG) yielded a lower deficit of
P33.5 billion in Q1 2015, in contrast to the
P98.1-billion programmed deficit for the
review quarter. Government expenditures
rose in Q1 2015, due mainly to the increased
allotment to local government units (LGUs).
Nonetheless, actual spending continued to be
below program levels.
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Report on Economic and Financial Developments
First Quarter 2015
Domestic financial market conditions
remained favorable in Q1 2015. This reflected
the positive global developments, as well as
upbeat investor sentiment on domestic
prospects. For example, the Philippine Stock
Exchange index (PSEi) averaged higher by
24.0 percent, year-on-year (y-o-y), from
Q1 2014. Meanwhile, the peso also
appreciated, buoyed by the prevailing
accommodative monetary policy stance in
major economies.
The Philippine banking system continued to
perform strongly, supported by sustained
economic expansion. Bank’ assets and
deposits continued to grow while asset
quality indicators have remained well below
pre-Asian crisis levels. Meanwhile, capital
adequacy ratios were kept above
international standards, even with the
implementation of the tighter Basel 3
framework.
The healthy external payments position
remains a source of strength for the
economy. The country’s balance of payments
(BOP) position reversed to a surplus of
US$0.9 billion from the deficit a year ago. The
surplus stemmed from robust inflows in the
current account and the marked decline in
net outflows (or net lending by residents to
the rest of the world) in the financial account.
Consequently, the gross international
reserves (GIR) rose anew to US$80.5 billion as
of end-March 2015, higher by US$1.0 billion
relative to the previous quarter’s level.
The increase was due mainly to the NG’s net
foreign currency deposits and the BSP’s
foreign exchange (FX) operations and income
from investments abroad.
The Philippine economy continued to
expand, albeit at a slower pace. Real gross
domestic product (GDP) expanded by
5.2 percent y-o-y in Q1 2015. Growth was
recorded in all economic sectors although at
slower rates than in the previous quarter. The
lower-than-programmed pace in government
spending as well as the softening in exports
dampened GDP growth for the review period.
By contrast, capital formation recorded
double-digit expansion, supported by
increases in durable equipment and
intellectual property products as well as
sustained growth in construction.
Employment conditions improve. Results of
the January 2015 Labor Force Survey (LFS) of
the Philippine Statistics Authority (PSA)
reported a decline in the unemployment rate
to 6.6 percent in Q1 2015 from 7.5 percent in
the same quarter a year ago.
Employment increased by 2.8 percent y-o-y to
37.5 million, led by services which generated
Bangko Sentral ng Pilipinas | 3
Report on Economic and Financial Developments
First Quarter 2015
the highest number of new jobs. The ratio of
the underemployed to total employed
persons likewise went down to 17.5 percent
in Q1 2015 from 19.5 percent in the same
period last year.
NG cash operations yield lower deficit. The
cash operations of the NG yielded a lower
deficit of P33.5 billion in Q1 2015 compared
to the quarter- and year-ago figures of
P42.0 billion and P84.1 billion, respectively.
The Q1 2015 fiscal deficit fell below the
P98.1-billion programmed deficit for the
review quarter, reflecting continued
underspending of the NG. Total revenues
increased by 18 percent y-o-y to reach
P470.5 billion but fell 3 percent below the
target collection for the review quarter.
Meanwhile, despite the 4.5-percent y-o-y
increase in total expenditures, NG spending
remained 13.4 percent lower than the
P582.2-billion programmed expenditure for
the quarter.
Inflation further eases. Headline inflation
eased further to 2.4 percent in Q1 2015 from
the quarter- and year-ago rate of 3.6 percent
and 4.1 percent, respectively. The further
easing was due mainly to food inflation which
fell further to 5.0 percent in Q1 2015 from
6.6 percent in Q4 2014 on ample domestic
supply of all food items, except fruits.
Likewise, non-food inflation decelerated
further to 0.6 percent in Q1 2015 from
1.4 percent in Q4 2014 owing to lower prices
of electricity, gas, and other fuels.
Official core inflation decreased further to
2.5 percent in Q1 2015 from 2.7 percent in
Q4 2014.
Domestic liquidity expands. Money supply
or M3 grew by 8.7 percent y-o-y as of
end-March 2015 to reach P7.6 trillion.
This growth was slower than the 11.2 percent
expansion as of end-December 2014.
The increase in M3 during the review period
was driven by the 10.4-percent expansion in
domestic credits to the economy, with the
sustained growth in bank lending, as well as
the 8.4-percent growth in net foreign assets,
attributed to sustained receipts from
overseas Filipinos’ (OF) remittances and
business process outsourcing (BPO).
The BSP maintains monetary policy rates.
During its monetary policy meetings on
12 February and 26 March, the BSP decided
to maintain its key policy interest rates at
4.0 percent for the overnight borrowing or
RRP facility and 6.0 percent for the overnight
lending or RP facility. The interest rates on
term RRPs, RPs, and SDAs were also kept
steady. The reserve requirement ratios were
Bangko Sentral ng Pilipinas | 4
Report on Economic and Financial Developments
First Quarter 2015
left unchanged as well. The decision to hold
rates steady was based on the assessment
that the inflation environment continued to
be manageable. At the same time, the MB
noted that risks to the inflation outlook
remained broadly balanced.
Domestic interest rates show mixed trends.
Average Treasury bill (T-bill) rates in the
primary market rose across the board in
Q1 2015 due to investor preference for
longer-term debt papers. By contrast,
secondary market yields of government
securities (GS) declined as of end-March 2015
compared to the rates as of end-December
2014, reflecting positive investor sentiment
amid ample market liquidity and expectations
of a benign inflation environment. Other
market interest rates, including the interbank
call loan (IBCL) rate, savings deposit rate, time
deposit rate, and Manila reference rate,
showed mixed trends owing to lower
domestic inflation on the one hand and
uncertainty over the pace of the US monetary
policy normalization on the other.
The Philippine banking system remains
sound and resilient. The Philippine banking
system sustained its robust performance,
supported by the country’s strong
macroeconomic fundamentals and solid
growth prospects. Banks’ balance sheets
continued to grow in y-o-y terms although at
a slower pace than in the previous quarter,
supported by sustained bank lending.
Moreover, capital adequacy ratios (CAR)
remained above international standards, even
with the implementation of the tighter Basel
III framework.
Resources of the banking system increased by
8.9 percent y-o-y as of end-March 2015.
Meanwhile, universal and commercial banks
(U/KBs) continued to account for 90 percent
of the total resources of the banking system.
The Philippine banking system’s gross
non-performing loan (GNPL) ratio,
at 2.5 percent as of end-March 2015, was
lower than the year-ago ratio of 2.8 percent
but slightly higher than the 2.3 percent
recorded in the previous quarter. Meanwhile,
net NPL ratio rose slightly to 0.7 percent from
0.6 percent in the year- and quarter-ago.
Nevertheless, prudent lending regulations
along with banks’ initiatives to improve their
asset quality kept the GNPL ratio to below its
pre-Asian crisis level of 3.5 percent.
Under the Basel 3 framework, the U/KBs’
industry average CARs at end-2014 stood at
15.2 percent and 16.2 percent on solo and
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Report on Economic and Financial Developments
First Quarter 2015
consolidated basis, respectively. The observed
decline from year-ago ratios was a result of
the revised definition of “bank capital”
applicable to foreign bank branches (FBBs).
Domestic equity prices trend upward. The
PSEi rallied by 24 percent y-o-y to average
7,681.8 index points in Q1 2015.
This reflected positive global developments,
such as the easing monetary stance by major
central banks and the US Fed’s decision to
maintain its policy rates during the quarter,
as well as upbeat investor sentiment
grounded on strong domestic
macroeconomic fundamentals and healthy
corporate earnings.
Debt spreads widen on external
uncertainties. Philippine credit default swap
(CDS) spreads averaged 92.7 bps as of
end-March, slightly higher than the Q4 2014
average of 90.8 bps, indicating a slight rise in
risk aversion toward Philippine debt papers.
Nevertheless, the country’s CDS traded lower
than Indonesia’s average of 154.6 bps,
Malaysia’s 131.3 bps and Thailand’s
108.1 bps. Moreover, the EMBI+Philippine
spreads averaged 128.2 bps, down from the
previous quarter’s 134.9 bps.
The BOP position yields surplus. The BOP
position reversed to a surplus of
US$0.9 billion in Q1 2015, from a deficit of
US$4.5 billion in the previous year. The
surplus in the current account widened,
supported by higher net receipts in the
services, primary and secondary income
accounts and the narrowing of the
trade-in-goods deficit. Meanwhile the
financial account posted a lower net outflow
compared to the previous year as net
outflows in portfolio and other investments
moderated. These were however offset by
the reversal of foreign direct investments to a
net outflow during the review quarter.
International reserves rise anew. The GIR
increased to US$80.5 billion as of
end-March 2015, higher by about US$1 billion
relative to the previous quarter and
US$0.8 billion from the year-ago level.
The end-March level remains adequate to
cover 10.6 months’ worth of imports of goods
and payments of services and income. It is
also equivalent to 6.1 times the country’s
short-term external debt based on original
maturity and 4.6 times based on residual
maturity. The increase in reserves was due
mainly to the NG’s net foreign currency
deposits income from the BSP’s investments
abroad. These inflows were partially offset by
payments for maturing foreign exchange
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Report on Economic and Financial Developments
First Quarter 2015
obligations of the NG and revaluation
adjustments.
External debt declines. The country’s external
debt profile continued to improve.
Outstanding external debt stood at
US$75.3 billion, lower from the year- and
quarter-ago level by 4.6 percent and
3.0 percent, respectively. The decline in debt
levels during the review period was attributed
largely to the US$2.0 billion net repayments,
mainly by banks. In terms of maturity profile,
external debt as of end-March 2015 remained
biased toward medium- and long-term (MLT)
accounts which represented 82.6 percent of
total. This implies that FX requirements for
debt payments are well spread out and, thus,
more manageable. Meanwhile, the external
debt ratio or total outstanding debt (EDT)
expressed as a percentage of annual
aggregate output (GNI), continued to exhibit
an improving trend, declining to 21.5 percent
for the review period from 23.9 percent a
year ago and 22.5 percent last quarter.
The peso strengthens. The peso averaged
P44.42/US$1 in Q1 2015, appreciating by
0.9 percent from the previous quarter’s
average and by 1.0 percent from the
comparable period last year. The peso, along
with other currencies in the region,
strengthened against the US dollar during the
review period on account of further easing
moves of major central banks, particularly,
the European Central Bank’s (ECB’s)
expansion of its asset purchase programme,
and the US Fed’s stance that it can be patient
in normalizing monetary policy, which
boosted the appeal of emerging market
assets. The strengthening of the peso was
also buoyed by the sustained inflows of
foreign exchange from steady OF remittances
and higher foreign portfolio and direct
investment. The country’s ample GIR likewise
supported the stability of the peso.
Global economic conditions remain uneven.
Global economic activity continued to be
characterized by moderate but uneven
growth in most advanced and emerging
economies. Labor market conditions,
nevertheless, showed signs of improvement.
Meanwhile, inflation in advance and
emerging economies generally declined.
The US economy grew at a faster pace of
2.7 percent in Q1 2015 from 2.4 percent in
the previous quarter, reflecting continued
improvements in domestic demand and
investments. Growth in the euro area
increased marginally to 1.0 percent during the
review period, supported by strong economic
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Report on Economic and Financial Developments
First Quarter 2015
performance in several member-countries.
Meanwhile, in Japan, output contracted
further by 1.4 percent in Q1 2015 on account
of the decline in public investment and net
exports.
Among emerging economies in Asia, Hong
Kong, South Korea and China posted a
slowdown in output growth for the review
quarter. Soft external demand weighed down
economic activity in Hong Kong and South
Korea. Meanwhile, growth in China slowed
down to 7.0 percent in Q1 2015, from
7.4 percent in the previous quarter, due to
declines in manufacturing and property
investment. In the ASEAN region, output
growth accelerated in Thailand to 3.0 percent
during the review quarter, boosted by the
growth in private spending and the surge in
public investment. Meanwhile, economic
activity in Indonesia and Malaysia moderated
with the decline in exports.
B. Challenges and Policy Directions
Global growth for 2015-2016, at 3.5 percent
and 3.8 percent, respectively, is expected to
be soft and uneven particularly in advanced
economies (AEs). Meanwhile, emerging
market economies (EMEs) are facing more
subdued growth prospects owing largely to
weak external demand. On the upside, lower
oil prices could provide a sizable boost to the
global economy.
Against the present global outlook, a key
challenge to the Philippine economy is the
downside risks to external demand which
could affect the country’s export activity as
growth in AEs remains uneven. The recovery
in the US could boost the country’s external
balance through export receipts and
remittance inflows. However, this could be
moderated by the growth outlook for the EU
and Japan, as well as the relatively subdued
prospects in EMEs, particularly China.
In addition, the global economy could enter a
period of low-growth conditions which,
in turn, could drag down external demand in
the medium term.
Given the prospect of the US Fed’s
normalization of monetary policy, the
Philippines could also face tighter financial
conditions as a result of volatility in the global
financial markets. Nevertheless, the possible
tightening of financial conditions may be
partially counterbalanced by the continued
monetary accommodation in the EU and
Japan.
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Report on Economic and Financial Developments
First Quarter 2015
Meanwhile, the decline in international oil
prices over the past year has resulted in the
moderation of domestic inflation pressures
which is seen to support private spending in
the near term. At the same time, this could
provide the BSP flexibility to keep policy rates
at current levels in support of economic
growth. Moreover, the risk of a demand-led
deflation in the country is likely to be minimal
since domestic demand conditions remain
firm, wages are rigid downwards and inflation
expectations are well-anchored.
A critical domestic challenge moving forward
is addressing structural bottlenecks,
particularly infrastructure challenges, to lift
investment and realize new growth sources.
Efforts by the NG to ramp up spending and
accelerate infrastructure projects will help to
raise potential output and thereby sustain the
growth momentum of the economy.
Toward this end, the public-private
partnership (PPP) initiative of the government
is expected to bridge the infrastructure gap.
Moreover, NG has announced that
infrastructure spending is targeted to reach
up to 4 percent of GDP in 2015.
For its part, the BSP will continue to be
data-dependent in its assessment of evolving
price and output developments to ensure that
the monetary policy stance remains
consistent with ensuring price and financial
stability while supporting sustainable
economic growth.
In addition, the BSP remains prepared to
deploy a menu of policy actions, as needed,
to rein in inflation expectations even as
previous monetary responses continue to
work their way through the economy.
The BSP is prepared to temper any adverse
impact of possible capital outflows on the
domestic economy by ensuring adequate
level of liquidity in the financial markets
during periods of heightened uncertainty and
increased risk aversion. While guarding
against speculative flows that could lead to
the peso’s volatility and undermine the
inflation target, the BSP will continue to
maintain a market-determined exchange rate
and a comfortable level of reserves.
On banking regulation and supervision, the
BSP intends to sustain the reform momentum
with a view to enhance the financial sector’s
resilience against shocks as well as boost its
role as a catalyst for durable long-term
economic growth. Toward this end, the BSP
continues to pursue measures to strengthen
corporate governance, enhance transparency,
expand financial products and markets, help
Bangko Sentral ng Pilipinas | 9
Report on Economic and Financial Developments
First Quarter 2015
develop market infrastructure, and upgrade
banking policies and guidelines.
On a broader perspective, the BSP will further
foster an enabling environment to promote
greater access to the financial system through
its financial inclusion program. Likewise, the
BSP will maintain a proactive stance in
ensuring the credibility of the payments and
settlements system. Finally, the BSP will
remain an active participant in regional and
international cooperation programs and fora,
in order to reap the benefits of collaborative
engagement.
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Report on Economic and Financial Developments
First Quarter 2015
A. Real Sector
Aggregate Supply and Demand
The Philippine economy started the year with a lower-than-expected
growth of 5.2 percent for Q1 2015. This growth performance is lower
compared to its quarter-ago and year-ago rates of 6.6 percent and
5.6 percent, respectively. The modest growth during the quarter was
attributed mainly to the slower-than-programmed pace of
government spending and softening in exports.
The major supply-side contributor to the Q1 2015 growth was the
sustained robust performance of the services sector. Boosting the
expansion in the services sector were the positive performances of the
following sub-sectors: transport, storage & communication; real
estate, renting and business activities; and trade and maintenance of
motor vehicles, motorcycles, personal and household goods.
On the demand side, growth was buoyed largely by the strong
MAIN REPORT
The Philippine
economy posts a
lower-than-expected
growth
Gross Domestic Product and Gross National Income
annual growth rate in percent; at constant 2000 prices
2
3
4
5
6
7
8
9
10
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Real GDP Real GNI
20132012 2014 2015
Bangko Sentral ng Pilipinas | 11
Report on Economic and Financial Developments
First Quarter 2015
performance of household spending, capital formation, and the
positive growth in government spending relative to its Q1 2014
performance.
Meanwhile, real GNI posted a 4.7 percent growth in Q1 2015, lower
than the 6.6 percent in Q1 2014. This was due in part to the decline of
the net primary income from the rest of the world which reflected the
weaker growth of compensation of OF workers in Q1 2015 of
2.0 percent compared to its year-ago growth of 12.6 percent. The
latter partly reflects base effects resulting from relatively high
remittance levels in 2014 as a result of transfers from OFs intended for
the rebuilding efforts in the aftermath of Typhoon Yolanda.
GDP by industry
Broad-based growth was observed in Q1 2015 as all sectors – AHFF,
industry, and services – posted positive increases. The services sector
remained the main driver of domestic expansion during the quarter.
The sector has been posting a steady growth of 5.6 percent over the
past three quarters, albeit lower than its Q1 2014 growth of 6.8 percent
(Table 1). Of the 5.2 percent Q1 2015 GDP growth, the services sector
was able to contribute 3.1 percentage points (ppts). Lending support
to the services sector were the trade sub-sector which contributed
1.5 ppts to total services sector growth; transportation, storage, and
communication as well as real estate, renting and business activities
sub-sector (1.2 ppts, respectively); and other services (1.1 ppts).
Bangko Sentral ng Pilipinas | 12
Report on Economic and Financial Developments
First Quarter 2015
The second major growth driver in Q1 2015 was the industry sector,
which added 1.9 ppts to the total GDP growth following a 5.5 percent
expansion. This growth was slightly higher than the previous year’s
5.4 percent expansion, but lower than its quarter-ago performance of
9.1 percent. In part, this could be attributed to the deceleration in the
growth of the construction sub-sector to 4.5 percent in Q1 2015 from
17.9 percent in Q4 2014. This happened as public construction
registered a double-digit contraction of 24.6 percent in Q1 2015 amid
some government spending bottlenecks as well as delays in the
implementation of programs and projects by some government
agencies. On the other hand, the manufacturing sub-sector continued
to provide a boost to the industry sector’s expansion, comprising
4.2 ppts of the total industry sector’s growth during the review quarter.
The primary contributors to the manufacturing sub-sector’s solid
performance were the radio, television and communication equipment
and apparatus (1.8 ppts), basic metal industries (1.2 ppts), chemical
and chemical products (1.1 ppts), beverage industries (0.7 ppts), and
publishing and printing (0.5 ppts).
Meanwhile, the AHFF sector posted a modest growth of 1.6 percent in
Q1 2015 and contributed 0.2 ppts to total GDP growth.
Gross Domestic Product, by Industry
annual growth rate in percent; at constant 2000 prices
-4
-2
0
2
4
6
8
10
12
14
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Agriculture, Hunting, Forestry and Fishing Industry Services
2012 2013 2014 2015
Bangko Sentral ng Pilipinas | 13
Report on Economic and Financial Developments
First Quarter 2015
This is higher than its year-ago growth of 0.6 percent, but lower than
its 4.2 percent growth in Q4 2014. The weak performance of the sector
during the review quarter was on the back of the decline in the
production of the sector’s two major crops - palay and corn.
The reported contraction of harvest area and drop in yield was
attributed to a wide array of factors including, among others: the
adverse effects of typhoons Seniang (which affected Capiz and Negros
Occidental) in December 2014 and Amang (Camarines Sur) in January
2015, intense heat, insufficient water supply, incidence of pests and
crop diseases, and strong winds experienced in some provinces.
Palay production in Q1 2015 recorded a 1.6-percent growth, lower
compared to the rates posted in the past year and during the previous
quarter of 3.3 percent and 6.8 percent, respectively. On the other
hand, corn yields registered a 4.0 percent increase in Q1 2015,
representing a significant deceleration from the 27.3 percent growth
in Q4 2014. Meanwhile, the productivity of the fishing sub-sector
contracted by 2.6 percent in Q1 2015, a reversal from the 4.2 percent
growth recorded in Q4 2014. Low stocking rate and low survival rate of
some fish varieties which contributed to lower production were, to a
certain extent, a result of insufficient water supply brought about by
warm weather conditions as well as the sudden change of water
temperature in certain provinces.
GDP by expenditure
On the expenditure side, household spending remains as the principal
source of economic expansion, contributing 3.7 ppts to the total
Q1 2015 GDP growth. This is reflective of the share of household
spending to total domestic output during the review quarter of about
70.0 percent. While the growth of household consumption was
subdued at 5.4 percent in Q1 2015 relative to its 6.1 percent growth in
the same period last year, it represented a 0.4-ppt increase compared
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Report on Economic and Financial Developments
First Quarter 2015
to its quarter-ago growth rate (Table 1a). The sustained positive
growth in consumer spending is strongly supported by stable prices of
commodities, decline in oil prices, availability of more jobs, higher
number of employed family members, and fewer typhoons during the
period.
The second major growth driver on the demand side is capital
formation, which accounted for 2.6 ppts of the total GDP growth in
Q1 2015, after posting an 11.8-percent increase. Lending a boost to
investments is the 14.3-percent growth in durable equipment,
supported mainly by the 14.2-percent rise in private construction.
These increases reflected in large part the continued buoyant
sentiment of the private sector on the prospects for domestic
economy. Government consumption has also offered an additional
push to the Q1 2015 growth, albeit modestly, after posting a
4.8-percent expansion compared to the 1.9 percent increase seen in
the same period last year. Such development was predominantly
credited to the accelerated disbursements of funds for maintenance
and other operating expenses. These disbursements were directed
toward social protection programs, bottom-up budgeting projects,
Gross Domestic Product, by Expenditure
annual growth rate in percent; at constant 2000 prices
-35
-25
-15
-5
5
15
25
35
45
55
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Household Final Consumption Expenditure
Government Final Consumption Expenditure
Capital Formation
2012 2013 2014 2015
Bangko Sentral ng Pilipinas | 15
Report on Economic and Financial Developments
First Quarter 2015
and other expenses related to the Asia-Pacific Economic Cooperation
meetings which the country is hosting.
Moving forward, the government is committed to accelerate public
spending and implementation of priority projects to bolster the
domestic economy. With recent efforts of the government to fast-track
programmed disbursements, higher growth in the next three quarters
could be expected to suppport the government’s growth target for
2015.
Labor and Employment
The results of the January 2015 LFS1 of the PSA showed an
improvement in the country’s labor indicators, with employment
growing 2.8 percent to 37.5 million in Q1 2015 from 36.4 million a year
ago (Table 2). All sectors registered growth, led by services which
generated the highest number of new jobs.
The number of jobless persons fell further, declining to 2.6 million in
Q1 2015 from 3.0 million a year earlier. The unemployment rate
dropped to 6.6 percent in Q1 2015 from 7.5 percent in Q1 2014 while
the underemployment rate also declined to 17.5 percent from
19.5 percent (Table 2). Meanwhile, the labor force participation rate
remained steady at 63.8 percent.
1 January 2015 and October 2014 figures are preliminary. Estimates for January 2015 and January 2014
exclude Region VIII. Estimates for April, July, and October 2014 exclude Leyte province.
Labor market
continues
improvement
Bangko Sentral ng Pilipinas | 16
Report on Economic and Financial Developments
First Quarter 2015
The number of employed persons increased by 2.8 percent to
37.5 million from 36.4 million, boosted by strong growth in all sectors
led by services. Employment in the services sector grew by
3.9 percent led by an expansion in the wholesale and retail trade
(4.3 percent or by 292,000) while the industry sector grew by
2.9 percent due mainly to robust growth in construction (4.7 percent
or by 109,000) and manufacturing (2.0 percent or by 62,000).
The agriculture sector improved slightly by 0.9 percent. Of the
37.5 million employed persons, 54.6 percent were in the services
sector, 29.5 percent in the agriculture sector and the remaining
15.9 percent in the industry sector.
Employment growth occurred across most classes of workers, led by
wage and salary workers (up by 3.5 percent or 737,000), particularly
those who worked in private establishments. Also posting gains were
self-employed workers without any paid employees (1.8 percent or
190,000) and unpaid family workers (5.4 percent or 208,000).
The number of persons on full-time and part-time employment both
increased by 2.5 percent (560,000) and 4.6 percent (603,000),
respectively.
Unemployment and Underemployment Ratesin percent
17.017.518.018.519.019.520.020.521.021.522.022.523.023.524.0
5.5
6.0
6.5
7.0
7.5
8.0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Unemployment Rate (LHS) Underemployment Rate (RHS)
2012 2013 2014 2015
Bangko Sentral ng Pilipinas | 17
Report on Economic and Financial Developments
First Quarter 2015
B. Fiscal Sector
National Government Cash Operations
The cash operations of the NG yielded a lower deficit of P33.5 billion
in Q1 2015 from the year-ago level of P84.1 billion. It is likewise
65.9 percent lower than the P98.1 billion programmed deficit for the
review period (Table 3). The NG’s cash position as a percent of GDP
stood at -1.1 percent in Q1 2015 from the year-ago level of
-2.9 percent.
Total revenues for Q1 2015 reached P470.5 billion, higher than the
year-ago level of P398.4 billion, but 2.8 percent lower than the target
level for the quarter of P484.1 billion. The increase from the
year-ago level was due mainly to improved collections by the Bureau
of Internal Revenue (BIR) and the Bureau of Customs (BOC).
Tax collections, which constituted 85.6 percent of total revenues,
amounted to P402.9 billion, 13.4 percent higher than the year-ago
level. Non-tax revenues, including grants, which consisted mainly of
collections made by the BTr, increased by 56.5 percent from the
year-ago level.
Cash Operations of the National Government
in billion pesos
-200
-100
0
100
200
300
400
500
600
700
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Revenues Expenditures Surplus/Deficit (-)
2012 2013 2014 2015
NG cash operations
yield a lower deficit
Bangko Sentral ng Pilipinas | 18
Report on Economic and Financial Developments
First Quarter 2015
Meanwhile, total expenditures in Q1 2015 reached P504.0 billion,
4.5 percent higher than the P482.5 billion expenditures in Q1 2014, but
13.4 percent lower than the P582.2 billion programmed expenditures
for the quarter. The increase in expenditures can be attributed to
increased allotment to LGUs and tax expenditures during the quarter.
The NG’s net repayment for Q1 2015 amounted to P4.0 billion,
a reversal from the year-ago net availment of P7.0 billion.
The net repayment resulted from the higher repayment than issuances
of domestic instruments (-P26.6 billion). The net repayment for the
review quarter was based on a gross financing mix ratio of 54:46, in
favor of external sources.
The NG will continue to pursue fiscal consolidation in the medium term
by supporting legislative initiatives to raise revenues and widen the tax
base. The NG has more resources that can be allocated to accelerate
infrastructure spending. Greater fiscal space resulted from proactive
liability management, enhanced implementation of tax administration
measures, and legislative reforms (e.g., Sin Tax Reform law). The need
to address infrastructure gaps is a top priority. There are plans to
increase spending on infrastructure to 5 percent of GDP by 2016.
C. Monetary Sector
Prices
Headline inflation eased further to 2.4 percent in Q1 2015 from the
quarter- and year-ago rates of 3.6 percent and 4.1 percent,
respectively (Table 4). This was within the Government’s inflation
target range of 3.0 percent ±1.0 percentage point for the year.
The continued deceleration in headline inflation was driven largely by
the slower increases in food prices as a result of adequate domestic
Inflation falls further
on lower food prices
Bangko Sentral ng Pilipinas | 19
Report on Economic and Financial Developments
First Quarter 2015
supply. Likewise, non-food inflation slowed down due to the decline in
the prices of electricity and domestic petroleum products.
Core inflation, which excludes some food and energy items to measure
underlying price pressures, decreased further to 2.5 percent in
Q1 2015 from 2.7 percent in Q4 2014 and 3.0 percent in Q1 2014.
Two out of three alternative measures of core inflation estimated by
the BSP were also lower during the review period relative to the rates
registered in the previous quarter. In particular, the trimmed mean and
net of volatile items measures edged lower to 3.0 percent and
2.3 percent, respectively, from the quarter-ago rates of 3.3 percent
and 2.4 percent. By contrast, the weighted median measure increased
to 3.0 percent in Q1 2015 from 2.7 percent a quarter ago.
Core inflation eases
Alternative Core Inflation Measuresquarterly averages of year-on-year change
Quarter
Official
Headline
Inflation
Official
Core
Inflation
Trimmed
Mean 1Weighted
Median 2
Net of
Volatile
Items 3
2012 3.2 3.7 3.2 3.0 3.4
Q1 3.1 3.5 3.0 2.6 3.0
Q2 2.9 3.7 3.1 3.2 3.3
Q3 3.6 4.1 3.4 3.2 3.9
Q4 3.0 3.4 3.2 3.0 3.4
2013 3.0 2.9 2.5 2.3 3.1
Q1 3.2 3.8 3.0 2.8 3.9
Q2 2.7 2.9 2.3 2.3 3.2
Q3 2.4 2.1 2.1 2.0 2.4
Q4 3.4 2.9 2.6 2.2 2.9
2014 4.1 3.0 3.5 2.9 2.7
Q1 4.1 3.0 3.3 2.6 2.8
Q2 4.4 3.0 3.6 3.2 2.6
Q3 4.7 3.3 3.8 3.1 2.8
Q4 3.6 2.7 3.3 2.7 2.4
2015
Q1 2.4 2.5 3.0 3.0 2.31
The trimmed mean represents the average inflation rate of the (weighted) middle 70 percent in a
lowest-to-highest ranking of year-on-year inflation rates for all CPI components.2
The weighted median represents the middle inflation rate (corresponding to a cumulative CPI
weight of 50 percent) in a lowest-to-highest ranking of year-on-year inflation rates.3
The net of volatile items method excludes the following items: bread and cereals, meat, fish, fruit,
vegetables, gas, solid fuels, fuels and lubricants for personal transport equipment, and
passenger transport by road, which represents 39.0 percent of al l items. The series has been
recomputed using a new methodology that is al igned with PSA's method of computing the official
core inflation, which re-weights remaining items to comprise 100 percent of the core basket after
excluding non-core items. The previous methodology retained the weights of volati le items in the
CPI basket while keeping their indices constant at 100.0 from month to month.
Source: Phil ippine Statistical Authority (PSA), BSP estimates
Bangko Sentral ng Pilipinas | 20
Report on Economic and Financial Developments
First Quarter 2015
Food inflation fell further to 5.0 percent in Q1 2015 from 6.6 percent
in Q4 2014 on ample domestic supply of all food items, except fruits.
Rice inflation eased further as the market remained well supplied due
to additional harvests in a number of rice-producing provinces.
Similarly, the continued decline in the prices of imported commodities
such as sugar, vegetable oils, cereals, and meat contributed to the
decline in food inflation.
Conversely, alcoholic beverages and tobacco (ABT) inflation rose
slightly to 4.0 percent in Q1 2015 from 3.9 percent in the previous
quarter owing to the annual tax adjustments mandated by Republic Act
(RA) No. 10351. It should be noted that prices of ABT increased
following the implementation of RA No. 10351, which raised the excise
tax on alcohol and tobacco products in January 2013.
Non-food inflation decelerated further to 0.6 percent in Q1 2015 from
1.4 percent in Q4 2014 due mainly to lower prices of electricity, gas,
and other fuels (-8.7 percent from -2.7 percent) and operation of
personal transport equipment (-10.5 percent from -2.2 percent).
Inflation on electricity, gas, and other fuels declined on lower
generation charges as well as price reductions in kerosene and LPG.
Ample domestic
supply of key food
items drives down
food inflation
Lower prices of
electricity and
domestic petroleum
products contribute
to the slowdown in
non-food inflation
Food and Non-Food Inflation in the Philippines (2006=100)in percent
0
1
2
3
4
5
6
7
8
9
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Headline Inflation
Food Inflation
Non-Food Inflation
2012 2013 2014 2015
Bangko Sentral ng Pilipinas | 21
Report on Economic and Financial Developments
First Quarter 2015
Meanwhile, reduction in the pump prices of diesel and gasoline
(reflecting declines in international oil prices) led to the fall in inflation
in personal transport equipment.
In terms of geographical location, the inflation rate in the National
Capital Region (NCR) slowed down to 1.9 percent in Q1 2015 compared
to its quarter-ago rate of 2.5 percent (Table 4a). Similarly, the inflation
rate in areas outside NCR (AONCR) decreased to 2.6 percent from
3.8 percent in Q4 2014 (Table 4b).
In NCR, food inflation declined to 4.6 percent in Q1 2015 from
6.0 percent in Q4 2014, due mainly to the slower increase in the prices
of all food items, except fruits and vegetables. Likewise, non-food
inflation went down to 0.7 percent from 1.0 percent in the previous
quarter as a result of the continued fall in the prices of housing, water,
electricity, gas, and other fuels as well as the slower price increases in
most non-food items, except transport and education.
In AONCR, food inflation was lower at 5.0 percent in Q1 2015
compared to the quarter-ago rate of 6.7 percent as all food items,
except fish, posted lower inflation rates. Similarly, non-food inflation
Inflation decreases in
both NCR and AONCR
Inflation Rate (2006=100)in percent
0
1
2
3
4
5
6
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Philippines
National Capital Region
Areas Outside the National Capital Region
201420132012 2015
Bangko Sentral ng Pilipinas | 22
Report on Economic and Financial Developments
First Quarter 2015
decelerated to 0.5 percent in Q1 2015 from its quarter-ago rate of
1.5 percent owing largely to the decline in the prices of housing, water,
electricity, gas, and other fuels, and transport.
Domestic Liquidity2
Money supply or M3 grew by 8.7 percent y-o-y as of end-March 2015
to reach P7.6 trillion. This growth was slower than the 11.2 percent
expansion as of end-December 2014 (Table 5).
The increase in M3 was driven largely by the 10.4-percent y-o-y
expansion in domestic claims or credits to the domestic economy in
March 2015. Credits extended to the private sector grew by
16.0 percent, consistent with the sustained growth in bank lending.
Meanwhile, net claims on the central government declined by
8.3 percent.
Net foreign assets (NFA) in peso terms rose by 8.4 percent y-o-y in
March 2015. The BSP’s NFA position expanded during the month on
the back of continued robust foreign exchange inflows coming mostly
from overseas Filipinos’ remittances and business process outsourcing
receipts. The NFA of banks likewise increased as banks’ foreign assets
2 The indicators used for money supply are: M1 (or narrow money), comprised of currency in circulation
and demand deposits; M2, composed of M1 plus savings and time deposits (quasi-money); M3, consisting
of M2 plus deposit substitutes; and M4, consisting of M3 plus foreign currency deposits.
Mar-15 Dec-14 Mar-14
Quarter-
on-
Quarter
Year-on-
Year
Domestic Liquidity (M3) 7,639.7 7,703.9 7,029.4 -0.8 8.7
of which:
Net Foreign Assets 3,875.6 3,752.1 3,576.3 3.3 8.4
Domestic Claims 6,987.6 7,053.0 6,332.0 -0.9 10.4
of which:
Net Claims on Central Government 1,089.8 1,119.1 1,188.5 -2.6 -8.3
Claims on Other Sectors 5,897.7 5,933.9 5,143.4 -0.6 14.7
Domestic Liquidity (M3)
Particulars
Levels (in bil lion pesos) Growth Rates (in %)
Bangko Sentral ng Pilipinas | 23
Report on Economic and Financial Developments
First Quarter 2015
continued to expand due mainly to the growth in their investments in
marketable debt securities and deposits with other banks, while banks’
foreign liabilities decreased on account of lower placements made by
foreign banks with their local branches.
Domestic liquidity growth during the quarter was broadly slower
relative to a year ago, reflecting the gradual normalization of liquidity
expansion after the operational adjustments involving access of trust
entities to the BSP SDA facility were completed in November 2013.
Following the slower expansion in M3, the growth of M4, a broader
concept of domestic liquidity comprised of broad money liabilities and
foreign currency deposits of residents, likewise decelerated to
9.6 percent y-o-y in March 2015 from 12.4 percent in December 2014.
Domestic Interest Rates
Average T-bill rates in the primary market rose across the board in
Q1 2015 due to investor preference for longer-term debt papers.
The 91-day, 182-day, and 364-day T-bill rates rose slightly to
1.47 percent, 1.73 percent and 1.95 percent in Q1 2015 from the
Q4 2014 rates of 1.29 percent, 1.70 percent and 1.83 percent,
respectively (Table 6).
By contrast, the yields of GS in the secondary market generally declined
as of end-March 2015 compared to the rates as of
end-December 2014. Positive investor sentiment amid ample market
liquidity and expectations of a benign inflation environment supported
the drop in the yields of most maturities, ranging from 0.7 bp (1-year)
to 30.0 bps (10-year). Meanwhile, the yields of 2-year, 4-year and
5-year GS increased by 13.9 bps, 1.6 bps and 14.8 bps, respectively.
Primary rates increase
across the board
Secondary market GS
yields decline generally
Bangko Sentral ng Pilipinas | 24
Report on Economic and Financial Developments
First Quarter 2015
Domestic interest rates showed mixed trends for the quarter, owing to
lower domestic inflation on the one hand and uncertainty over the
pace of the US Fed rate hike on the other. The savings and time deposit
rates were higher in Q1 2015 by 1.4 bps, and 2.9 bps, respectively.
The interbank call loans rate and bank lending rates, meanwhile,
decreased by 1.2 bps and 15.4 bps, respectively.
The differentials (gross and net of tax) between the domestic and
US interest rates widened in Q1 2015 relative to Q4 2014. The 16.5-bp
increase in the average 91-day T-bill rate led to the higher differential
against the average US 90-day T-bill rate which rose by 2.4 bps and the
average US 90-day LIBOR which fell by 1.4 bps.
The mixed trends for foreign interest rates were due to fears of
deflation across the Euro zone and Asia, uncertainty over the US Fed
rate hike and the Greece-EU bailout negotiations.
The positive differential between the BSP's policy interest rate
(overnight borrowing or RRP rate) and the US Federal Funds target rate
remained at about 375 bps as of end-March 2015, as both the RRP and
the US Federal Funds target rate remained unchanged during the
Interest rate
differentials widen
Other market interest
rates show mixed
trends
Bangko Sentral ng Pilipinas | 25
Report on Economic and Financial Developments
First Quarter 2015
quarter. Adjusted for the risk premium (measured as the difference
between the 10-year ROP and the 10-year US note), the spread
between the two policy rates narrowed to 249 bps in end-March 2015
from 287 bps in end-December 2014. The 8.9-bp increase in the yield
on the 10-year ROP note amid the 28.6-bp decrease in the 10-year
US Treasury note led to the increase in the risk premium.
Monetary Policy Developments
During its monetary policy meetings on 12 February and 26 March, the
BSP decided to maintain its key policy interest rates at 4.0 percent for
the overnight borrowing or RRP facility and 6.0 percent for the
overnight lending or RP facility. The interest rates on term RRPs, RPs,
and SDAs were also kept steady. The reserve requirement ratios were
left unchanged as well.
The MB’s decision was based on its assessment that the inflation
environment continued to be manageable. Latest baseline forecasts
indicated that inflation is likely to settle within the lower half of the
target range of 3.0 percent ± 1 ppt for 2015 and 2016. The forecasts
were also supported by well-anchored inflation expectations, which
remained within the target band over the policy horizon.
The MB likewise noted that the risks to the inflation outlook continued
to be broadly balanced, with upside risks emanating from pending
petitions for adjustments in utility rates and possible power shortages.
Meanwhile, global economic activity has turned slightly more positive
but continued to be uneven, which could further mitigate upward
pressures on commodity prices.
At the same time, the MB observed that domestic demand conditions
remained robust, owing to solid private demand, adequate domestic
The BSP maintains
monetary policy
settings during the
quarter
Bangko Sentral ng Pilipinas | 26
Report on Economic and Financial Developments
First Quarter 2015
liquidity, and buoyant business sentiment. Higher public spending was
also expected to support economic activity.
Given these considerations, the MB was of the view that current
monetary policy settings remain appropriate. Going forward, the BSP
will continue to monitor domestic and external developments affecting
the inflation outlook to ensure that the monetary policy stance
remains consistent with its price and financial stability objectives.
D. Financial Sector
The Philippine banking system continues to register strong
performance. Banks’ balance sheets were marked by a sustained
growth in assets and deposits. Asset quality indicators also continued
to improve, while capital adequacy ratios remained above
international standards, even with the implementation of the tighter
Basel III framework.
Banks continued to dominate the financial sector, with U/KBs
accounting for 90 percent of total banks’ assets. In terms of the
number of head offices and branches/agencies, non-banks financial
intermediaries had a wider physical network than banks, consisting
mainly of pawnshops.
Performance of the Banking System
Market Size
The number of banking institutions (head offices) fell to 648 as of
end-December 2014 from the year- and quarter- ago levels of 673 and
652, respectively, indicating continued consolidation of banks as well
as the exit of weaker players in the banking system (Table 7).
Philippine banking
system maintains
strong stance and
positive outlook in
Q1 2015
Number of banks
declines, but operating
network continues to
expand
Bangko Sentral ng Pilipinas | 27
Report on Economic and Financial Developments
First Quarter 2015
By banking classification, banks (head offices) consisted of 36 universal
and commercial banks (U/KBs), 69 thrift banks (TBs), and 543 rural
banks (RBs). Meanwhile, the operating network (head offices and
branches/agencies) of the banking system expanded to 10,361 offices
in Q4 2014 from 9,935 offices during the same period in the previous
year and 10,207 offices in Q3 2014, due mainly to the increase in the
branches/agencies of U/KBs, TBs and RBs.
The increase in the resources of the banking system slowed down to
8.9 percent to P11.4 trillion as of end-March 2015 from the year-ago
level of P10.4 trillion (Table 8). The deceleration from the 11.8 percent
growth in Q4 2014 could be traced to the slower growth of bank
lending. U/KBs accounted for 90 percent of the total resources of the
banking system. As a percent of GDP, total resources slightly decreased
to 88.9 percent in Q1 2015.
Total Resources of the Banking SystemLevels in trillion pesos; share in percent
0
20
40
60
80
100
0
2
4
6
8
10
12
14
Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar
Total Resources (LHS) as % of GDP (RHS)
2012 2013 2014 2015
Bangko Sentral ng Pilipinas | 28
Report on Economic and Financial Developments
First Quarter 2015
Savings Mobilization
Savings and time deposits remained the primary sources of funds for
the banking system. Banks’ total deposits3 as of end-March 2015
amounted to P6.7 trillion, 7.5 percent or P4.7 billion higher than the
year-ago level. The upturn in deposits in the first quarter was
a slowdown from the 10.4 percent rise posted in the previous quarter.
Savings and demand deposits expanded by 3.9 percent and
12.8 percent, respectively.4 Time deposits likewise grew by 9.6 percent
to P1.8 trillion as of during the review period. Meanwhile, foreign
currency deposits (FCD-Residents) owned by residents, grew by
8.8 percent, y-o-y.5
3 This refers to the total peso-denominated deposits of the banking system. 4 The domestic liquidity or M3 growth in March 2015 also reflects statistical base effects associated with
the significant increase in domestic liquidity a year ago of 35.3 percent, following the operational
adjustments involving access of trust entities to the BSP SDA facility, which were completed in November
2013. Along with the savings, time and demand deposits, M3 includes currency in circulation and deposit
substitutes. 5 M4 is the sum of M3 and FCD-Residents.
Deposits
continues to grow
in Q1 2015
Deposit Liabilities of Banks
in billion pesos
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar
Demand Savings Time FCD
2012 2013 2014 2015
Bangko Sentral ng Pilipinas | 29
Report on Economic and Financial Developments
First Quarter 2015
Bank Lending Operations
Outstanding loans of U/KBs as of end-March 2015, net of banks' RRP
placements with the BSP, rose by 16.1 percent. Likewise, bank lending,
inclusive of RRPs, increased by 15.7 percent relative to the level posted
in Q1 2014. The increases, however, were slower compared to the
previous quarter on both net (19.9 percent) and gross (19.1 percent)
of RRP placements bases. Commercial banks' loans have been
increasing steadily at double-digit pace since January 2011.
The continued broad-based growth in bank lending supported the
sustained expansion of the productive sectors of the economy in
Q1 2015.
Loans for production activities—which comprised more than
80.0 percent of banks’ aggregate loan portfolio—grew, y-o-y,
by 15.8 percent as of March 2015. The growth in production loans
during the review quarter was driven primarily by lending to the
following sectors: real estate, renting, and business services
(12.6 percent); manufacturing (13.9 percent); wholesale and retail
trade (15.1 percent); electricity, gas and water (16.8 percent);
and financial intermediation (22.9 percent). Bank lending to other
Loans Outstanding of Commercial Banks (Gross of RRPs)in trillion pesos
0
1
2
3
4
5
Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar
2012 2013 2014 2015
Bank lending slightly
contracted, q-o-q
Bangko Sentral ng Pilipinas | 30
Report on Economic and Financial Developments
First Quarter 2015
sectors also increased except for public administration and defense,
which declined by 2.9 percent. Loans for household consumption
expanded by 19.8 percent in Q1 2015 amid continued growth in credit
card loans, auto loans and other types of loans (i.e., salary loans and
personal loans).
Credit Card Receivables
The combined credit card receivables (CCRs) of U/KBs and TBs as of
end-December 2014, inclusive of credit card subsidiaries, increased by
4.4 percent to P164.3 billion relative to the previous year’s level of
P157.4 billion. Meanwhile, the ratio of CCRs to the total loan portfolio
(TLP) was at 3.0 percent as of end-December 2014, lower than the
3.4 percent registered a year ago. In terms of loan quality, the ratio of
non-performing CCRs to total CCRs at 8.2 percent was an improvement
from last year’s 9.6 percent, due to the 10.9 percent decrease in the
banking system’s non-performing CCRs.
Auto Loans
The combined auto loans (ALs) of U/KBs and TBs, inclusive of
non-bank subsidiaries, increased by 23.5 percent to P230.1 billion as of
end-December 2014 from P186.3 billion a year ago. Consumers’ strong
demand, particularly from the BPO market, for passenger cars
(e.g. those falling under the sub-compact category) and commercial
vehicles, introduction of new and improved models, appropriate
product mix, as well as attractive financing packages from banks and
other car financing firms, amidst the mild slowdown in economy,
helped sustain the rise in vehicle purchases. The share of total ALs to
TLP, exclusive of interbank loans (IBL), however, increased slightly to
4.2 percent relative to the previous quarter’s 4.1 percent.
Auto loans increase
further as industry is
boosted by the
significant demand,
particularly from the
BPO market, along
with the right product
mix and better
financing schemes
Credit card
receivables continue
to grow while asset
quality continues to
improve
Bangko Sentral ng Pilipinas | 31
Report on Economic and Financial Developments
First Quarter 2015
In terms of loan quality, the ratio of non-performing ALs to total ALs of
4.3 percent was higher than the previous year’s 4.2 percent.
Salary Loans
Salary loans (SLs) extended by U/KBs and TBs, inclusive of non-bank
subsidiaries, increased significantly by 30.4 percent to P62.1 billion as
of end-December 2014 from P44.6 billion as of end-June 2014.6
The share of total SLs to TLP, exclusive of IBL, increased slightly to
1.1 percent relative to 0.9 percent as of mid-2014.
In terms of loan quality, the ratio of non-performing SLs to total SLs of
4.6 percent is an improvement relative to the previous 5.6 percent
during the same period.
Residential Real Estate Loans
As of end-December 2014, the combined residential real estate loans
(RRELs) of U/KBs and TBs rose by 24.3 percent relative to the previous
year's P320.5 billion. Sustained household investments in residential
properties, the slow rise in the cost of construction materials,
the increase in the number of projects unveiled by real estate
developers as well as banks’ intensified promotional campaigns in
terms of offering lower interest rates supported the growth in real
estate purchases during the review period. The ratio of RRELs to TLP
increased, however, to 7.3 percent relative to the previous year’s
7.0 percent. By industry, U/KBs held a bigger slice of the total
residential real estate exposure at 58.9 percent (P234.4 billion),
while TBs accounted for the remaining 41.1 percent (P163.8 billion).
In terms of loan quality, the ratio of non-performing RRELs to total
6 Data collection started with June 2014 data.
Household
investments continue
to boost the country’s
residential real estate
market
Salary loans rose by
almost a third, q-o-q
Bangko Sentral ng Pilipinas | 32
Report on Economic and Financial Developments
First Quarter 2015
RRELs of U/KBs and TBs increased to 3.1 percent from the previous
year’s 3.0 percent.
Asset Quality and Capital Adequacy
The Philippine banking system’s GNPL ratio, at 2.5 percent as of
end-March 2015, was lower than the year-ago’s 2.8 percent but slightly
higher than the quarter-ago’s 2.3 percent (Table 9).7 Nevertheless,
banks’ initiatives to improve their asset quality along with prudent
lending regulations helped maintain the GNPL ratio to a level below its
pre-Asian crisis at 3.5 percent8. Compared to the previous quarter, the
Q1 2015 GNPL ratio reflected the combined effect of the GNPL
expansion by P6.2 billion, from P134.8 billion in Q4 2014 to
P141.1 billion, and the banking system’s TLP decline by P101.0 billion,
from P5.8 trillion in Q4 2014 to P5.7 trillion. Similarly, the net
non-performing loan (NNPL) ratio rose slightly to 0.7 percent from
0.6 percent in the year- and quarter-ago ratios. In computing for the
NNPLs, specific allowances for credit losses9 on TLP are deducted from
the GNPLs. The said allowances increased to P102.7 billion in Q1 2015
from the P100.1 billion posted a quarter ago.
7 For comparative purposes, computations for periods prior to January 2013 are aligned with Circular No.
772. Certain ratios were rounded-off to the nearest hundredths to show marginal movements. 8 The 3.5 percent NPL ratio was based on the pre-2013 definition. 9 This type of provisioning applies to loan accounts classified under loans especially mentioned (LEM),
substandard-secured loans, substandard-unsecured loans, doubtful accounts and loans considered as loss
accounts.
Bangko Sentral ng Pilipinas | 33
Report on Economic and Financial Developments
First Quarter 2015
The Philippine banking system’s GNPL ratio of 2.5 percent was higher
relative to Indonesia (2.3 percent), South Korea (1.6 percent), Thailand
(2.3 percent), and Malaysia (1.2 percent).10
The loan exposures of banks remained adequately covered as the
banking system registered an NPL coverage ratio of 116.7 percent.
The Q1 2015 ratio was lower than the 119.8 percent posted last
end-December 2014 but marginally higher than the year-ago ratio of
116.4 percent. The ratio is indicative of banks’ continued compliance
with the loan-loss provisioning requirements of the BSP to ensure
adequate buffers against potential credit losses.
Compliance with the BSP capital framework for U/KBs under the
Basel III framework11 took effect in 1 January 2014. The new Basel III
regime incorporates adjustments to the treatment of bank capital in
ways that enhance the use of the CAR as a prudential measure.
10 Sources: Various central bank websites, IMF and financial stability reports, Indonesia (commercial banks,
Q3 2014); Malaysia (banking system [impaired loans/net loans], Q1 2015); Thailand (commercial banks,
Q1 2015); and South Korea (domestic banks, Q1 2015). 11 Basel III no longer counts towards “bank capital” those Basel II-compliant capital instruments that do
not have the feature of loss absorbency. Loss absorbency refers to the ability of bank-eligible capital
instruments other than common equity to behave and act in the same way as common equity shares at
the point where the bank takes losses and becomes non-viable. In addition, Basel III now deducts from
capital the investments of banks in non-allied undertakings, defined benefit pension fund assets, goodwill
and other intangible assets.
Ratio of Gross NPLs and Net NPLs to Total Loans of the Banking Systemin percent
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1.0
1.1
2.1
2.3
2.5
2.7
2.9
3.1
3.3
3.5
3.7
3.9
4.1
Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar
Gross NPLs/Total Loans (LHS)
Net NPLs/Total Loans (RHS)
2012 2013 2014 2015
Banks remain
well-capitalized
amid tighter
capital requirements
Bangko Sentral ng Pilipinas | 34
Report on Economic and Financial Developments
First Quarter 2015
The CARs of U/KBs stood at 15.2 percent and 16.2 percent on solo and
consolidated bases at end-2014. These figures are well-above the BSP
regulatory threshold of 10.0 percent and international minimum of
8.0 percent.
The CAR figures slid from 16.5 percent on solo and 17.7 percent on
consolidated bases posted in the previous year. The decline reflected
the new treatment of “bank capital” applicable to FBBs as required
under Republic Act 10641, or “An Act Allowing Full Entry of Foreign
Banks in the Philippines”. This law became effective in the last quarter
of 2014.12
The industry’s capital structure remains primarily composed of high
quality Common Equity Tier 1 (CET 1). At end-2014, the U/KBs’ CET 1
comprised 12.5 percent and 13.6 percent of their risk weighted assets
(RWAs) on solo and consolidated bases. The banks’ Tier 1 ratio, on the
other hand, stood at 12.7 percent and 13.8 percent on solo and
consolidated bases.
Meanwhile, the RWAs of the U/KB industry rose by 6.8 percent, q-o-q,
at end-2014, due to a P357.2 billion increase in loans to the corporate
sector.
12 The new framework for FBBs provides that bank capital should mainly consist of Permanently Assigned
Capital (PAC) and derecognizes the “Net Due To” account from regulatory capital.
Bangko Sentral ng Pilipinas | 35
Report on Economic and Financial Developments
First Quarter 2015
The CAR of U/KBs on a consolidated basis at 16.2 percent was higher
than those of Malaysia (15.2 percent) and South Korea (13.9 percent),
but lower compared to those of Indonesia (19.5 percent) and Thailand
(16.6 percent).13
Banking Policies
Banking policies implemented during the quarter were aimed at
strengthening regulations on: (1) submission of reports by banks acting
as underwriters, brokers, dealers and transfer agents of securities;
(2) activities and services allowable for micro-banking offices;
(3) reports required from banks; (4) internal control and internal audit;
and (5) delivery of securities (Annex A).
13 Sources: Various central bank websites, IMF and financial stability reports, Indonesia (commercial banks,
Q3 2014); Thailand (commercial banks, Q1 2015); Malaysia (banking system, Q1 2015); and Korea (bank
holding companies, Q1 2015).
Capital Adequacy Ratio of Universal and Commercial Banksin percent
14
15
16
17
18
19
20
Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec
Solo Consolidated
2012 2013 2014 ** Basel 3 framework
Bangko Sentral ng Pilipinas | 36
Report on Economic and Financial Developments
First Quarter 2015
Capital Market Reforms
Capital market policy reforms continued to gain ground during the first
quarter of 2015 as the BSP and other government agencies, as well as
the private sector adopted measures to develop further the Philippine
capital market. During the period, the reforms focused on helping
develop market infrastructure, promoting investor confidence, and
enhancing transparency and corporate governance (Annex B).
Stock Market
The PSEi went up to average 7,681.8 index points in Q1 2015, higher by
24.0 percent than the year-ago’s average of 6,196.7 index points and
by 6.8 percent than the quarter-ago’s average of 7,190 index points.
The combination of favorable global developments (such as the easing
monetary stance by most central banks and the US Fed’s decision to
maintain its policy rates) and strong domestic macroeconomic
fundamentals (including the robust Q4 GDP growth and corporate
earnings, manageable inflation environment, strong external
payments position, sound and stable banking system, improving fiscal
space) pushed the index to register 23 new all-time highs in the first
three months of the year. The local bourse closed at 7,940.5 index
points as of 31 March 2015, higher by 9.8 percent year-to-date and by
23.5 percent relative to the level a year ago (Table 10).
BSP continues to
collaborate with
government agencies
and private sector in
developing the capital
market
Favorable global and
domestic
development lift the
benchmark stock
index to post 23 new
all-time high in the
first three months of
2015
Bangko Sentral ng Pilipinas | 37
Report on Economic and Financial Developments
First Quarter 2015
In January, strong buying sentiment on the back of the continued
decline in international oil prices and expectations of a delay in
US Fed interest rate hikes helped push the PSEi to cross the
7,600-barrier. Upbeat expectations over the country’s Q4 2014 GDP
growth also led the index to close the month at 7,689.9 index points,
6.4 percent higher than the closing index in end-December 2014.
In February, the local index breached the 7,800-mark, boosted by the
country’s higher-than-expected Q4 GDP growth and the BSP’s decision
to keep policy rates unchanged during its February policy meeting.
The market’s optimism over the positive turn in the Greece-EU bailout
negotiations as well as the People’s Bank of China’s move to cut
interest rates for the second time since November 2014 and lower
reserve requirements further pushed the local bourse upwards, closing
the month at 7,730.6 index points, higher by 0.5 percent
month-on-month and by 6.9 percent year-to-date.
In March, buying momentum continued over reports of strong
domestic corporate earnings and the low inflation environment.
China’s move to lower reserve requirements anew for all commercial
Philippine Stock Exchange Index (PSEi)quarterly average; in index points
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2012 2013 2014 2015
Bangko Sentral ng Pilipinas | 38
Report on Economic and Financial Developments
First Quarter 2015
banks to spur credit and growth also boosted sentiment. Toward the
end of the month, the US Fed’s decision to maintain its interest rate at
0.25 percent once again boosted investor sentiments. The PSEi crossed
the 8,000 barrier during intra-day trading on 30 March before closing
the month at 7,940.5 index points, higher by 2.7 percent
month-on-month and 9.8 percent year-to-date.
Other stock market indicators mirrored the rally in the local index.
Total stock market capitalization increased by 5.1 percent
quarter-on-quarter to reach P15.0 trillion as of end-March. Foreign
investors’ net purchases amounted to P48.9 billion during the quarter,
an improvement from the net sales of P3.7 billion posted in the
preceding quarter. Data from Bloomberg also indicated that the
price-earnings ratio increased from an average of 20.8x in Q4 2014 to
an average of 21.6x in Q1 2015. At this level, Philippine shares are the
second most expensive in the ASEAN5 region, after Indonesia‘s 22.1x.
Meanwhile, on a quarter-on-quarter basis, six out of the seven
monitored Asia-Pacific national stock indices rallied relative to the
previous quarter, boosted by hints of a delay in the US interest rate
hike and the general easing in monetary policy stance by most central
banks. China’s bourse led the rally in Q1, with its average stock index
Other indicators affirm
upbeat sentiment in
the local bourse
PSE Market Capitalization by Sector: Q1 2015percent share
Financials
27.44%
Industrial
18.85%Holding Firms
23.50%
Services
14.55%
Property
12.31%
Mining and Oil
3.09%
SME
0.26%
Bangko Sentral ng Pilipinas | 39
Report on Economic and Financial Developments
First Quarter 2015
increasing by 27.1 percent quarter-on-quarter following the injection
of government stimulus to boost economic activity. This was followed
by the Philippines (6.8 percent), Indonesia (5.1 percent), Hong Kong
(3.9 percent), Singapore (3.4 percent) and Thailand (0.2 percent).
In contrast, the average Malaysian stock index retreated by
0.3 percent during the period in review.
Local Currency Bond Market
Size and Composition14
Local currency (LCY) bonds issued by both the public and private
sectors amounted to P122.0 billion in the first quarter of 2015, less
than half of the P673.0 billion registered in the previous quarter and
39 percent lower than the P199.4 billion in the same period in 2014.
The NG limited its issuance to T-bills and Fixed-rate Treasury bonds
(T-bonds) at P110.0 billion, down by 81.9 percent from Q4 2014 given
the absence of Retail and Benchmark bond issuances during the review
14 This refers to the peso-denominated bond issuances by both public and private sectors. Public sector
issuances of LCY bonds include issuances in the primary market and rollovers of maturing series which
were issued by the BTr and GOCCs. This excludes issuances by the central bank.
LCY bond issuances of
the public and private
sectors decline
Selected Asian Stock Indicesin index points
0
5,000
10,000
15,000
20,000
25,000
30,000
Indonesia Singapore Philippines Hong Kong China Malaysia Thailand
Q2 2014 Q3 2014 Q4 2014 Q1 2015
Bangko Sentral ng Pilipinas | 40
Report on Economic and Financial Developments
First Quarter 2015
period. The private sector likewise issued less of LCY bonds which
amounted to P12.0 billion, 70.3 percent lower on a q-o-q basis and
87.9 percent less on a y-o-y basis.
In terms of market share, issuances from the NG continued to
dominate the domestic securities market, comprising 90 percent share
of the total bond issuances while the private sector comprised the
remaining 10 percent. Bonds issued by the Bureau of the Treasury (BTr)
accounted for the entire public sector issuance while issuers from the
private sector came from the real estate sector.
Local Currency Bond Issuancesin billion pesos
0
100
200
300
400
500
600
700
800
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Public Sector Private Sector
2013 2014 2015Source: Bureau of the Treasury; Bloomberg
Local Currency Bond Issuances: January-March 2015
Public
90%
Private
10%
Source: Bureau of the Treasury; Bloomberg
Bangko Sentral ng Pilipinas | 41
Report on Economic and Financial Developments
First Quarter 2015
Primary Market 15
In the primary auctions conducted for both T-bills and T-bonds, the NG
offered a total of P135.0 billion of both short- and long-term debt
securities. Demand was robust as tenders were oversubscribed by
about two times. Tenders reached P131.1 billion as against the NG’s
offering of P60.0 billion for T-bills while T-bond tenders reached
P150.0 billion against the P75.0 billion offering.
The NG did not award in full its programmed borrowings as the banks
sought higher rates in the 5 January T-bill and 17 February T-bond
auctions that pushed the government to reject all the bids offered
during these auctions. The expected normalization of interest rate in
the US influenced largely the higher rates demanded by investors.
Secondary Market
Trading of both government and private corporate bonds declined,
albeit marginally, by 0.4 percent to P1,512 billion from P1,518 billion
registered in the previous quarter. However, it rose by 43.2 percent
from the same period a year ago.
15 The discussion includes primary market for government issuances only.
The NG rejected bids for
both T-bills and T-bonds
due to higher yields
demanded
Results of GS Auctionsin billion pesos
2015 Offerings TendersAccepted
Bids
Rejected
Bids
1st
Quarter 135.0 281.1 90.0 191.1
T-bills 60.0 131.1 40.0 91.1
T-bonds 75.0 150.0 50.0 100.0
Source: Bureau of the Treasury (BTr)
Trading slows down at
the secondary market
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Report on Economic and Financial Developments
First Quarter 2015
The lower q-o-q growth can be attributed to the market’s
“wait-and-see” stance given the uncertainty in the timing and
magnitude of the US monetary policy tightening that is expected to
begin in 2015. However, trading at the Fixed Income Exchange (FIE)
was supported by the country’s sound macroeconomic fundamentals
with Fitch Ratings re-affirming the investment grade credit rating of the
Philippines in March 2015. Trading was dominated mostly by
FX Treasury Notes (FXTNs) accounting for about 86 percent while the
share of corporate bonds traded at the Exchange remained marginal at
0.4 percent and lower than the previous quarter’s 1.7 percent share.
Foreign Currency Bond Market
During the quarter, both the government and the corporate sector
raised funds in the offshore market. The Philippines issued
US$2 billion worth of new 25-year US dollar bonds with a coupon of
3.95 percent, significantly lower than the 5.0 percent previously issued
25-year bond in 2012. The country was the first to issue in the global
dollar bond market for 2015 with most of the proceeds, US$1.5 billion,
will be used to switch and retire old bonds while the US$500 million
will be used for funding the budget.
Both the NG and
private corporations
tap the international
bond market in raising
funds
Secondary Market Volume of Private Corporate and Government Bondsin billion pesos
0
500
1,000
1,500
2,000
2,500
3,000
3,500
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2012 2013 2014 2015
Source: Philippine Dealing and Exchange Corporation
Bangko Sentral ng Pilipinas | 43
Report on Economic and Financial Developments
First Quarter 2015
For the private sector, banks issued 5-year dollar notes amounting to
US$543 million during the quarter. Proceeds will be used to finance
operations and retire existing debt.
Credit Risk Assessment
On 17 March 2015, Fitch Ratings maintained its credit ratings of the
Philippines for the second consecutive year.
The outlook on the long-term issuer defaults ratings (IDRs) is stable.
The country ceiling was also affirmed at “BBB” and the short-term
foreign currency IDR at “F3”. This is one notch below the rating
assigned by Moody’s Investors Service and Standard and Poor’s.
Fitch cited the following factors in maintaining the credit ratings: First,
the country’s strong macroeconomic performance, second,
remittances and growth of the BPO industry underpin the country’s
economic growth; third, Fitch also forecasts real GDP to grow at
6.3 percent in 2015 and 6.2 percent in 2016; fourth, the sustained
current account surpluses since 2003 have supported the build-up in
foreign exchange reserves and turned the country into a net external
creditor; and fifth, Fitch estimates the country was net external
creditor at 15.4 percent of GDP at end-2014, compared with the “BBB”
median net external debtor position of 4.7 percent of GDP.
Fitch Ratings
maintained its credit
ratings for the second
consecutive year
as of March 2015
Rating
Agency
Local
Currency
(LT/ST)
Foreign
Currency
(LT/ST)
Outlook
S&P BBB/A2 BBB/A2 Stable
Moody's Baa2/n.a. Baa2/n.a. Stable
Fitch BBB/n.a. BBB-/F3 Stable
Philippine Sovereign Credit Ratings
Bangko Sentral ng Pilipinas | 44
Report on Economic and Financial Developments
First Quarter 2015
Sovereign Spreads
The country’s 5-year sovereign CDS spreads averaged 92.7 bps as of
31 March, up from Q4 2014 average of 90.8 bps, indicating a rise in risk
aversion towards Philippine sovereign debt papers. Against those of
neighboring economies, the Philippine CDS traded lower than
Indonesia’s average of 154.6 bps, Malaysia’s 131.3 bps and Thailand’s
108.1 bps. On the other hand, the EMBI+Philippine spreads averaged
128.2 bps, down from the previous quarter’s 134.9 bps.
The widening of debt spreads during the quarter was attributed mostly
to the uncertainties over the timing of US Fed rate hike, exacerbated
by Greece bailout worries, negative headlines related to the Chinese
property sector, and volatilities resulting from the sudden move of
Swiss National Bank to remove its cap on its currency. These external
headwinds, among others, translated to the expansion in debt spreads
of emerging market bonds, including the Philippines.
In particular, statements from the US Fed that suggest interest rates
could rise in the near term kept spreads elevated in January and early
parts of March. Swings in US economic indicators, such as the bigger
than expected increase in US non-farm payrolls in February, bolstered
the case for the Fed to raise policy rates beginning June 2015.
Debt spreads widen
Bangko Sentral ng Pilipinas | 45
Report on Economic and Financial Developments
First Quarter 2015
Renewed concerns over Greece contributed to the expansion in
emerging market debt spreads as the EU considered the country’s list
of reforms inadequate.
On the other hand, the stimulus measures from the ECB and the Bank
of Japan implemented in Q1 2015 have eased widening pressures on
debt spreads. At the local front, the BSP’s move to keep policy rate
unchanged helped keep interest rates low both at the primary and
secondary markets for fixed income securities. By end of the quarter,
debt spreads declined after the US Fed announced a cut in its growth
and inflation outlook, allaying fears of a sooner-than-expected rate
hike.
As of 31 March, the extra yield investors demand to own Philippine
debt over U.S. Treasuries (or the EMBI+Philippine spread) stood at
123 bps, lower than end-December’s closing of 133 bps. On the other
hand, the country’s 5-year sovereign CDS climbed to 93 bps from
end-December’s 90 bps. Against other neighboring economies, the
Philippine CDS traded narrower than Indonesia’s 154 bps, Malaysia’s
134 bps, and Thailand’s 106 bps.
Bangko Sentral ng Pilipinas | 46
Report on Economic and Financial Developments
First Quarter 2015
Payments and Settlements System16
In Q1 2015, the total number of transactions settled and processed in
the Philippine Payments and Settlements System (PhilPaSS) increased
by 2.1 percent to 341,971 from the previous quarter’s level of 334,909.
The uptick in the number of transactions was due to the q-o-q increase
in the following: tertiary transactions in government securities trades
(15.5 percent), secondary transactions in government securities trades
(12.1 percent), US dollar trades (peso leg) via
payment-versus-payment (PvP) (6.1 percent), and interbank
transactions (3.0 percent).
On the other hand, the total value of transactions reached
P70.1 trillion, 7.2 percent lower from the quarter-ago level of
P75.5 trillion. The overall decrease in the total transaction value was
due to the q-o-q decline in the following accounts: Bancnet
transactions (17.0 percent), Megalink transactions (16.9 percent),
RP/RRP/SDA maturities transactions (13.7 percent), and interbank
transactions (9.3 percent).
On a y-o-y basis, both the volume and value of transactions decreased
by 0.3 percent and 27.1 percent, respectively.
16 Starting 1 April 2014, the volume and value of transactions exclude payment transfers to BSP Payments
Unit.
Volume of PhilPaSS
transactions
decreases
Q1 Q4 Q1 Q-o-Q Y-o-Y
Volume 341,971 334,909 342,870 2.1 -0.3
Value (in trillion PhP) 70.1 75.5 96.1 -7.2 -27.1
Transaction Fees (in million PhP) 35.6 34.4 37.9 3.6 -6.1
PhilPass Transactions
Source: Payments a nd Settlements Offi ce , BSP
Growth Rates (%)2015 2014
Bangko Sentral ng Pilipinas | 47
Report on Economic and Financial Developments
First Quarter 2015
The total revenues derived from PhilPaSS operations increased by
3.6 percent to P35.6 million. In contrast, total revenues decreased by
6.1 percent relative to previous year’s level.
E. External Sector
Balance of Payments
The country’s balance of payments position yielded a surplus of
US$877 million in Q1 2015, a reversal of the US$4.5 billion deficit
registered in Q1 2014 (Table 11). This favorable development stemmed
from the robust inflows in the current account, combined with the
marked decline in net outflows (or net lending by residents to the rest
of the world) in the financial account. The current account continued
to perform strongly as all sub-accounts registered improvements.
Meanwhile, in the financial account, net outflows in the other
investment and portfolio investment accounts were significantly
lower. The improving global economic conditions supported the
favorable outturn in the country’s BOP. In particular, the economic
momentum in the United States remained firm and Japan showed
some modest expansion. Some growth was also seen in the euro area
owing largely to firming domestic demand and gradual strengthening
of external trade. Meanwhile, the global inflation environment
remained benign, reflecting the broadly subdued outlook for the
international price of oil. On the domestic front, manageable inflation,
higher-than-expected output growth in Q4 2014, and reports of strong
corporate earnings boosted investor optimism.
Q1 2015 BOP position
reverses to a surplus
Bangko Sentral ng Pilipinas | 48
Report on Economic and Financial Developments
First Quarter 2015
Current Account. The current account registered a surplus of US$3.3 billion
(equivalent to 4.8 percent of GDP) in Q1 2015, more than twice the
US$1.5 billion surplus (2.3 percent of GDP) posted in the comparable quarter
last year. The notable improvement in the current account surplus was
attributed to higher net receipts in the services, primary and secondary
income accounts coupled with the narrowing of the trade-in-goods deficit.17
Trade-in-Goods. The trade-in-goods deficit narrowed to US$4.7 billion in
Q1 2015 from US$5.4 billion in Q1 2014 due mainly to the combined effects
of the decline in imports of goods by 3 percent, stemming largely from the
drop in the value of petroleum crude imports due to the fall in the
international price of crude oil,18 and the expansion in exports of goods by
2.5 percent.
Exports of Goods. Exports of goods rose by 2.5 percent to reach
US$10.4 billion in Q1 2015 from US$10.2 billion in Q1 2014, driven by
the continued demand from major trading partners such as the US,
Hong Kong, and Malaysia. The uptrend was attributed mainly to
17 Primary Income account (formerly the Income account) shows the flows for the use of labor and financial
resources between resident and non-resident institutional units. Secondary Income account (formerly the
Current Transfers account) shows current transfers, in cash or in kind, for nothing in return, between
residents and non-residents. 18 Based on World Bank Commodities Price data, the average price of Dubai crude oil in January-March
2015 declined to US$52.2/barrel from US$104.4/barrel in January-March 2014.
Current account surplus
expands
Exports of goods rise
Trade-in-goods deficit
narrows as price of
crude oil falls
in million US$
2015 2014
Current Account 3,305 1,495
Capital Account 22 26
Financial Account * 606 4,098
Net Unclassified Items -1,845 -1,897
Overall BOP 877 -4,475
* Positive balance in the financial account indicates net outflows
while a negative balance indicates net inflows. The overall BOP
position, therefore, is equal to the current account plus the capital
account minus the financial account plus net unclassified items.
Balance of Payments
Q1
Bangko Sentral ng Pilipinas | 49
Report on Economic and Financial Developments
First Quarter 2015
exports of manufactures which grew by 3.3 percent to reach
US$8.4 billion. In particular, higher shipments were posted for
non-consigned electronic products (including other electronics),
machinery and transport equipment, chemicals, and garments.
Exports of mineral products totaling US$792 million increased by
19.3 percent on account of higher shipments of copper metal.
Exports of coconut products rose by 25.4 percent to reach
US$441 million driven by higher export volume as the international
world price of coconut oil declined during the period. However, these
increments were moderated by the decline in exports of sugar and
products, petroleum, forest products, fruits and vegetables, and other
agro-based products.
Imports of Goods. Imports of goods amounted to US$15.1 billion in
Q1 2015, lower by 3 percent than the US$15.6 billion posted in
Q1 2014, due mainly to the contraction in imports of mineral fuels and
lubricants and capital goods.
Imports of mineral fuels and lubricants dropped by 38.7 percent, due
largely to the decline in the import value of other mineral fuels and
petroleum crude owing to lower prices in the world market even as
import volume increased following sustained demand to support
Imports of goods
decline
Bangko Sentral ng Pilipinas | 50
Report on Economic and Financial Developments
First Quarter 2015
domestic production. Imports of capital goods, which aggregated
US$3.3 billion during the quarter, decreased by 2.7 percent on account
largely of lower procurement of aircraft, ships and boats
(by 41.3 percent) and land transport equipment excluding passenger
cars and motorized cycle (by 4.4 percent).
Meanwhile, imports of raw materials and intermediate goods and
consumer goods grew in Q1 2015. Raw materials and intermediate
goods imports rose by 23.1 percent to US$5.5 billion, boosted by
increased imports of semi-processed raw materials (by 20.9 percent),
mainly materials and accessories for the manufacture of
non-consigned electronics (by 236.4 percent). Increases in the
importation of chemicals (by 9.7 percent) and manufactured goods
(by 2.4 percent) were also recorded during the quarter. Imports of
consumer goods rose by 7.2 percent to US$2.3 billion in Q1 2015 as
purchases of durable and non-durable goods were higher by
14.6 percent and 1.1 percent, respectively.
Trade-in-Services. Net receipts from trade-in-services rose to
US$2.5 billion in Q1 2015, compared to the US$1.8 billion net receipts
in Q1 2014. The 38.8 percent growth was due largely to net receipts in
Net receipts from
trade-in-services rise
Bangko Sentral ng Pilipinas | 51
Report on Economic and Financial Developments
First Quarter 2015
technical, trade-related and other business services (US$3.2 billion)19,
and computer services (US$928 million)20. Export revenues in business
process outsourcing services totaled US$4.3 billion in Q1 2015, or a
growth of 12.8 percent from the US$3.8 billion receipts in the same
quarter a year ago. Higher net receipts were likewise registered in
personal, cultural, and recreational services. Meanwhile, the decreases
in net payments of financial, and maintenance and repair services also
contributed to the growth in net receipts in trade-in-services.21
Primary Income. The primary income account recorded net receipts of
US$308 million in Q1 2015, more than fourfold the US$66 million net
receipts in the comparable period last year. This was due largely to
lower net payments of investment income (by 7.4 percent) on account
of reduced net payments of dividends and reinvested earnings on
foreign direct investments, along with the 6.4 percent increase in
compensation inflows from resident OF workers which amounted to
US$1.9 billion.
Secondary Income. Net receipts in the secondary income account
reached US$5.2 billion in Q1 2015, 2.8 percent higher than the
US$5 billion net receipts in Q1 2014. Growth was attributed mainly to
the 3.9 percent improvement in personal transfers totaling
US$4.8 billion. The bulk of these personal transfers came from
non-resident OF workers' remittances (about 98 percent), which
increased by 4.2 percent to US$4.7 billion. Sustained demand for
skilled Filipino manpower overseas and the initiatives of banks and
19 Include manufacturing services on physical inputs owned by others, mostly electronic products, and
BPOs pertaining mostly to contact centers, animation, and medical transcriptions. 20 Include BPOs pertaining to software publishing and development. 21 Based on BPM6, financial services consist of: a) explicitly charged and other financial services;
and b) financial intermediation services indirectly measured (FISIM). FISIM refers to margins between
interest payable and reference rate on loans and deposits. Government goods and services n.i.e. cover
goods and services: a) supplied by and to embassies, military bases and international organizations;
b) acquired from the host economy by diplomats, consular staff, and military personnel located abroad
and their dependents; and c) services supplied by and to governments and not included in other categories
of services.
Net receipts from
primary income
expand
Net receipts from
secondary income
increase
Bangko Sentral ng Pilipinas | 52
Report on Economic and Financial Developments
First Quarter 2015
non-bank remittance service providers to expand their international
and domestic market coverage through tie-ups abroad as well as the
introduction of innovations in their remittance products continued to
provide support to the steady inflow of remittances.
Capital Account. Net receipts in the capital account declined to
US$22 million in Q1 2015 from US$26 million in the same quarter last
year. Outflows arising from residents’ net acquisition of non-produced
non-financial assets from non-residents were higher during the
quarter.
Financial Account. The financial account posted net outflows
(or net lending by residents to the rest of the world) of US$606 million
in Q1 2015, lower by 85.2 percent than the US$4.1 billion net outflows
in Q1 2014. This was driven by the notable decline in net outflows of
portfolio investments (by 91.9 percent) and other investments
(by 99.6 percent). These lower net outflows, however, were offset by
the reversal of the direct investment account to net outflows from net
inflows during the quarter.
Direct Investments. Direct investments registered net outflows of
US$395 million in Q1 2015, a reversal of the US$487 million net
inflows posted in the same quarter last year. Residents’ net
acquisition of financial assets amounting to US$1.2 billion were
greater than their net incurrence of liabilities (foreign direct
investments in the Philippines or FDI) of US$851 million. In particular,
residents’ net placements of equity capital abroad increased by
83.1 percent to reach US$348 million while their placements in debt
instruments issued by non-residents (or intercompany borrowings)
declined by 13.5 percent (at US$873 million). Meanwhile, FDI during
the quarter were lower by 50.4 percent as non-residents’ net
placements in debt instruments decreased by 54.6 percent
Capital account
yields lower net
receipts
Net outflows in
the financial
account decline
Direct investments
reverse to net
outflows
Bangko Sentral ng Pilipinas | 53
Report on Economic and Financial Developments
First Quarter 2015
(at US$412 million) and their net placements in equity capital fell by
54 percent (at US$254 million). On gross basis, equity capital
placements came largely from the United States, Japan, Singapore,
Spain, and Germany. The funds were channeled primarily to
manufacturing; electricity, gas, steam and air conditioning supply; real
estate; financial and insurance; and wholesale and retail trade sectors.
Portfolio Investments. Net outflows in the portfolio investments
account amounted to US$227 million in Q1 2015, markedly lower
than the US$2.8 billion net outflows in the same quarter last year.
This developed as net incurrence of liabilities or foreign portfolio
investments totaled US$1.3 billion, a reversal of the US$1.6 billion net
repayment of liabilities in the same quarter in 2014. In particular, net
placements by non-residents in debt securities were posted during
the quarter at US$234 million in contrast to the net withdrawals of
US$1.9 billion a year ago. Moreover, net placements by non-residents
in equity and investment fund shares increased to US$1.1 billion from
US$351 million in the comparable period the previous year.
Favorable domestic developments, particularly the continued stable
inflation environment, higher-than-expected output growth in
Q4 2014, and healthy external payments position reflected improved
investor sentiment. Meanwhile, residents’ net acquisition of financial
assets increased by 25.8 percent to reach US$1.6 billion, boosted by
residents’ higher net placements in debt securities issued by
non-residents. Net placements by domestic deposit-taking
corporations and non-banks reached US$912 million and
US$606 million, respectively.
Financial Derivatives. The financial derivatives account posted a higher
net loss of US$22 million during the review quarter compared to
US$19 million in Q1 2014.
Trading in financial
derivatives yields
net loss
Portfolio
investments
account registers
lower net outflows
Bangko Sentral ng Pilipinas | 54
Report on Economic and Financial Developments
First Quarter 2015
Other Investments. The other investment account registered net
outflows of US$7 million in Q1 2015, a marked decline from the
US$1.8 billion net outflows recorded in the same quarter last year.
The outflows were due mainly to the net repayment of liabilities by
residents, particularly loans availed of by domestic deposit-taking
corporations from non-residents (US$3.0 billion). Meanwhile, the main
sources of inflows during the quarter were the net withdrawal of
foreign currency and deposits by residents (US$1.4 billion) and net
repayment by non-residents of loans availed from domestic
deposit-taking corporations (US$1.0 billion).
International Reserves
The GIR increased to US$80.5 billion as of end-March 2015, higher by
about US$1 billion relative to the previous quarter and US$0.8 billion
from the year-ago level (Table 12). The GIR level for the review period
remains adequate to cover 10.6 months’ worth of imports of goods and
payments of services and income. It is also equivalent to 6.1 times the
country’s short-term external debt based on original maturity and
4.6 times based on residual maturity.
GIR level rises
Net outflows of
other investments
drop
Gross International Reservesin million US dollars
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2012 2013 2014 2015
Bangko Sentral ng Pilipinas | 55
Report on Economic and Financial Developments
First Quarter 2015
The increase in the level of reserves was due to the NG’S net foreign
currency deposits and the BSP’s foreign exchange operations and
income from investments abroad. These inflows were partially offset
by the payments made by the NG for its maturing foreign exchange
obligations and revaluation adjustments on the BSP’s gold holdings and
foreign currency-denominated reserves.
Of the total reserves as of end-March, 87.7 percent were held in
foreign investments. Gold comprised 9.2 percent of total while the
remaining 3.1 percent were in the combined holdings of Special
Drawing Rights (SDRs), the BSP’s reserve position in the IMF and
foreign exchange.
Net international reserves (NIR), which refer to the difference between
the BSP’s GIR and total short-term liabilities, amounted to
US$80.4 billion as of end-March, lower by US$0.9 billion from the level
in the previous quarter.
Exchange Rate
In the first quarter of 2015, the peso appreciated against the US dollar
by 0.9 percent to average P44.42/US$1 from the previous quarter’s
average of P44.81/US$1, and by 1.0 percent relative to the
P44.87/US$1 average in the first quarter of 2014 (Table 13).22
The strength of the peso during the review period was mainly on
account of further easing moves of major central banks, particularly,
the ECB’s expansion of its asset purchase programme, and the
US Federal Reserve’s stance that it can be patient in normalizing
monetary policy, which boosted the appeal of emerging market assets,
including the peso.
22 Dollar rates or the reciprocal of the peso-dollar rates were used to compute for the percentage change.
The peso appreciates
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Report on Economic and Financial Developments
First Quarter 2015
In January 2015, the peso strengthened to average P44.60/US$1
relative to the P44.69/US$1 average in December 2014 reflecting
market optimism that declining oil prices will improve trade balances
in the region and the decision of the ECB to inject fresh funds into the
euro zone’s ailing economy, which prompted investors back to
emerging market assets, including the peso.23 In February, the peso
appreciated further to P44.22/US$1 as the weak manufacturing data
in the US, as well as the dovish statement from US Fed Chairman Janet
Yellen that the US Fed will be patient in raising interest rates (stressing
that the US labor market still showed weakness and inflation remains
low) dampened sentiments towards the US dollar.24 Meanwhile, in
March, the peso weakened to average P44.45/US$1 as the strong
US jobs data sparked speculation that the Fed may increase its policy
rate earlier than expected. 25
On a year-to-date basis, the peso appreciated against the US dollar by
0.04 percent on 31 March 2015 as it closed at P44.70/US$1, moving in
tandem with most Asian currencies except the Malaysian ringgit,
Indonesian rupiah, Singaporean dollar, Korean won, and Japanese yen
which depreciated vis-à-vis the US dollar.26
23 On 22 January 2015, the ECB announced an expanded asset purchase program. The program adds the
purchase of sovereign bonds to the ECB’s existing private sector asset purchase programmes to address
the risks of a too prolonged period of low inflation. The program will encompass the asset-backed
securities purchase program (ABSPP) and the covered bond purchase program (CBPP3), which were both
launched late last year. Combined monthly purchases will amount to €60 billion. They are intended to be
carried out until at least September 2016 and in any case until the Governing Council sees a sustained
adjustment in the path of inflation that is consistent with its aim of achieving inflation rates below, but
close to, 2% over the medium term. 24 The Institute for Supply Management (ISM) reported that national factory activity in the US fell to
53.5 index points from 55.1 index points a month ago. 25 Nonfarm payrolls rose 295,000 after increasing by a downwardly revised 239,000 in January. February
marked the 12th straight month that employment gains have been above 200,000, the longest such run
since 1994. The unemployment rate dropped 0.2 percentage points to 5.5%, the lowest reading since
May 2008, but largely reflected people dropping out of the labor force. (Source: US Bureau of Labor
Statistics) 26 Based on the last done deal in the afternoon.
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Report on Economic and Financial Developments
First Quarter 2015
Meanwhile, volatility, as measured by the coefficient of variation (COV)
of the peso’s daily closing rates was higher at 0.7 percent during the
review quarter compared with 0.3 percent in the fourth quarter of
2014. Exchange rate volatility edged higher partly due to diverging
monetary policies in advanced economies.27
On a real trade-weighted basis, during the review quarter, the peso lost
external price competitiveness against the basket of currencies of all
trading partners (TPI) and trading partners in advanced (TPI-A) and
developing countries (TPI-D) as the real effective exchange rate (REER)
index of the peso increased by 7.6 percent, 11.0 percent, and
5.1 percent, respectively, relative to the fourth quarter of 2014. 28,29
This developed due to the combined effects of the nominal
27 The coefficient of variation is computed as the standard deviation of the daily exchange rate divided by
the average exchange rates for the period. 28 The Trading Partners Index (TPI) measures the nominal and real effective exchange rates of the peso
across the currencies of 14 major trading partners of the Philippines, which includes US, Euro Area, Japan,
Australia, China, Singapore, South Korea, Hong Kong, Malaysia, Taiwan, Indonesia, Saudi Arabia, United
Arab Emirates, and Thailand. The TPI-Advanced measures the effective exchange rates of the peso across
currencies of trading partners in advanced countries comprising of the US, Japan, Euro Area, and Australia.
The TPI-Developing measures the effective exchange rates of the peso across 10 currencies of partner
developing countries which includes China, Singapore, South Korea, Hong Kong, Malaysia, Taiwan,
Indonesia, Saudi Arabia, United Arab Emirates, and Thailand. 29 The REER index represents the Nominal Effective Exchange Rate (NEER) index of the peso, adjusted for
inflation rate differentials with the countries whose currencies comprise the NEER index basket.
A decrease in the REER index indicates some gain in the external price competitiveness of the peso, while
a significant increase indicates the opposite. The NEER index, meanwhile, represents the weighted average
exchange rate of the peso vis-à-vis a basket of foreign currencies.
Year-to-Date Appreciation/Depreciation of Asian Currencies Against the US Dollar
As of 31 March 2015; in percent
1.20
1.14
0.77
0.13
0.04
-0.33
-1.57
-3.56
-5.22
-5.55
-7 -6 -5 -4 -3 -2 -1 0 1 2 3
Thai Baht
New Taiwan Dollar
Indian Rupee
Chinese Yuan
Philippine Peso
Japanese Won
South Korean Won
Singaporean Dollar
Indonesian Rupiah
Malaysian Ringgit
Based on last done deal transaction (closing price) as of 4:00pm, Manila
Bangko Sentral ng Pilipinas | 58
Report on Economic and Financial Developments
First Quarter 2015
appreciation of the peso and widening inflation differential against
these currency baskets.
Similarly, relative to the first quarter of 2014, the peso lost external
price competitiveness against the basket of currencies of TPI, TPI-A,
and TPI-D as the peso appreciated in real terms by 9.3 percent,
14.6 percent, and 5.6 percent, respectively, due to the combined
effects of the peso’s nominal appreciation and positive inflation
differential against these currency baskets.
External Debt
Outstanding Philippine external debt stood at US$75.3 billion as of
end-March 2015, lower by US$2.4 billion (or 3.0 percent) from the
end-2014 level of US$77.7 billion (Table 14). Year-on-year, the debt
stock likewise reflected a decline of US$3.6 billion (or 4.6 percent) from
US$78.9 billion in March 2014.
The decline in the debt levels in Q1 2015 was attributed largely to the
US$2.0 billion net repayments, mainly by banks. Of this, US$3.1 billion
pertained to “Due to Head Office/Branches Abroad” (DTHOBA)
accounts of foreign bank branches as well as bills payable. Negative FX
revaluation (US$220 million) arising from the strengthening of the
US Dollar against other currencies and an increase in residents’
External debt stays
manageable
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Report on Economic and Financial Developments
First Quarter 2015
cinvestments in Philippine debt papers (US$100 million) also
contributed to the decline in the debt stock.
Y-o-y, the decrease was due to: (a) negative FX revaluation
adjustments (US$2.2 billion); (b) net repayments (US$1.9 billion); and
(c) previous periods’ adjustments (negative US$220 million) due to
audit findings as well as late reporting of transactions. However, these
were mitigated by the rise in non-residents’ investments in Philippine
debt papers (US$704 million).
As of end-March 2015, the maturity profile of the country’s external
debt remained biased towards MLT accounts [i.e., those with original
maturities longer than one year] which represented 82.6 percent
(US$62.2 billion) of total external debt. This means that
FX requirements for debt payments are well spread out and, thus,
more manageable. Meanwhile, short-term (ST) loans [or those with
original maturities of up to one year] stood at US$13.1 billion,
accounting for the 17.4 percent balance of total external debt.
Public sector external debt, which comprised 52.0 percent of total debt
stock, declined slightly to US$39.1 billion from the US$39.3 billion
(50.7 percent of total debt) level as of end-2014 due mainly to negative
FX revaluation adjustments (US$209 million) as the US Dollar
strengthened against most currencies. Private sector debt, on the
other hand, stood at US$36.2 billion (48.0 percent of total external
debt), lower than US$38.3 billion a quarter ago due largely to the net
repayments of bank liabilities (US$2.9 billion).
The debt service ratio (DSR), which relates principal and interest
payments or debt service burden (DSB) to exports of goods and
receipts from services and primary income, is a measure of the
adequacy of the country’s FX earnings to meet maturing obligations.
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Report on Economic and Financial Developments
First Quarter 2015
The ratio improved further to 6.95 percent in March 2015 due to higher
receipts and lower payments during the year (Table 15). The DSB has
consistently remained well below the international benchmark range
of 20.0 to 25.0 percent.
The external debt ratio (a solvency indicator), or total outstanding debt
(EDT) expressed as a percentage of annual aggregate output (GNI),
continued to exhibit an improving trend and was recorded at
21.5 percent in Q1 2015 from 22.5 percent last quarter and 23.9
percent a year ago. The same trend was observed using GDP as
denominator, as the debt stock dropped by US$2.4 billion vis-à-vis the
5.2 percent growth of the Philippine economy in Q1 2015.
Foreign Interest Rates
The timing of exit from accommodative monetary policy in AEs will
differ across countries depending on the strength of their economic
growth. Accommodative monetary policy is expected to continue in
countries where the recovery remains fragile due to weakness in labor
market conditions, slowdown in spending, and anemic bank lending
growth. The US which concluded its asset purchase program in October
2014 is set to lift interest rates this year once labor market conditions
and economic growth gain traction.
In Q1 2015, the US Fed maintained its existing policy of reinvesting
principal payments from its holdings of agency debt and agency
mortgage-backed securities and of rolling over maturing Treasury
securities at auction after concluding its asset purchase program in
October 2014. Meanwhile, the US Fed maintained the target range for
the federal funds target rate between 0-0.25 percent.
However, the US Fed noted that it will be appropriate to raise the
target range for the federal funds rate when it has seen further
Monetary policy in AEs
remains accommodative
where recovery remains
fragile
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Report on Economic and Financial Developments
First Quarter 2015
improvement in the labor market and if inflation will move back to its
2 percent objective over the medium term. As the US Fed maintained
its monetary policy stance, the US prime rate and discount rate
continued to average 3.25 percent and 0.75 percent, respectively,
during the review period. Meanwhile, the US Federal Fund rate
increased marginally to 0.097 percent in Q1 2015 from the
0.093 percent average reported in the previous quarter (Table 16).
The Monetary Policy Committee (MPC) of the Bank of England (BOE)
maintained its monetary policy settings, keeping the official bank rate
paid on KB reserves at 0.5 percent in Q1 2015. The MPC also decided
to maintain the stock of asset purchases financed by the issuance of
central bank reserves at £375 billion.
The Bank of Japan (BOJ), after shifting to quantitative and qualitative
monetary easing policy, adopted the monetary base control which
involved the change in the main operating target for its money market
operations (MMO) from the uncollateralized overnight call rate.
In Q1 2015, the BOJ continued to conduct MMO to increase the
monetary base at about 80 trillion yen from 60-70 trillion yen yearly.
In addition, the BOJ continued to buy annually Japanese government
bonds (JGBs) at 80 trillion yen from 50 trillion yen, exchange-traded
funds (ETFs) at 3 trillion yen from 1 trillion yen, and Japan REITs at
90 billion yen from 30 billion yen. The BOJ will maintain its purchases
of commercial papers and corporate bonds until their outstanding
amounts reach 2.2 trillion yen and 3.2 trillion yen, respectively.
The Governing Council of the ECB decided to keep the interest rates on
the main refinancing operation, marginal lending facility, and interest
rate on deposit facility unchanged at 0.05 percent, 0.30 percent and
-0.20 percent, respectively.
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Report on Economic and Financial Developments
First Quarter 2015
Meanwhile, the 90-day LIBOR and 90-day Singapore Interbank Offered
Rate (SIBOR) increased in Q1 2015 to 0.260 percent and 0.750 percent
from 0.236 percent and 0.425 percent, respectively, even as global
financial markets remained generally liquid (Table 16).
Global Economic Developments
In the first quarter of 2015, global economic activity was characterized
by moderate but uneven growth in most advanced and emerging
economies. Global labor market conditions showed signs of
improvement while inflation rates of advanced and emerging
economies generally declined.
The acceleration of US GDP to 2.7 percent in the first quarter of 2015,
from 2.4 percent in the previous quarter, reflected an upturn in
personal and government consumption expenditures and gross
investments.30
Growth of the euro area increased marginally to 1.0 percent during the
review quarter from 0.9 percent, a quarter ago, supported by the
strong performance of Italy, France, Cyprus, Spain, Slovakia, Portugal,
Latvia, and the Netherlands.31
Meanwhile, economic growth in Japan contracted further to
1.4 percent during the review quarter from 0.9 percent decline in the
fourth quarter on account of the decline in public investment and net
exports.32
Among emerging economies in Asia, Hong Kong, South Korea and
China posted a slowdown in output growth for the review quarter.
Hong Kong posted 2.1 percent GDP growth in the first quarter of 2015
30 US Bureau of Economic Analysis 31 Eurostat 32 Statistics Bureau of Japan
Bangko Sentral ng Pilipinas | 63
Report on Economic and Financial Developments
First Quarter 2015
from 2.4 percent a quarter ago on account of soft external demand.33
In South Korea, economic activity eased to 2.4 percent during the
review quarter from 2.7 percent in the previous quarter as the increase
in investment and consumption was not enough to offset a negative
contribution from net exports.34 In China, economic activity expanded
by 7.0 percent during the review quarter, slowing down from the
7.3 percent growth in the preceding quarter due to the decline in
manufacturing and property investment.35 In Singapore, however,
output growth expanded to 2.6 percent during the review quarter from
2.1 percent, a quarter ago, as the expansion in the wholesale and retail
trade and the construction sectors offset the decline in manufacturing
and the slowdown in the finance and insurance sector.36
In the ASEAN region, output growth accelerated in Thailand during the
review quarter. The Thai economy advanced 3.0 percent during the
review quarter, up from a 2.1 percent expansion in the previous
quarter, boosted by the growth in private spending and the surge in
public investment.37 Meanwhile, economic activity in Indonesia,
Malaysia and the Philippines rose at a slower pace during the review
quarter. The Indonesian economy grew by 4.7 percent in the first
quarter of 2015, down from a 5.0 percent expansion in the previous
quarter due to the decline in exports and a slowdown in government
consumption.38 In Malaysia, output growth advanced 5.6 percent
during the review quarter, moderating marginally from the 5.7 percent
expansion a quarter ago, on account of the decline in exports.39
The Philippine economy expanded 5.2 percent during the review
33 Census and Statistics Department, Hong Kong 34 Bank of Korea 35 National Bureau of Statistics of China 36 The Ministry of Trade and Industry, Singapore 37 National Economic and Social Development Board, Thailand 38 Statistics Indonesia 39 Bank Negara, Malaysia
Bangko Sentral ng Pilipinas | 64
Report on Economic and Financial Developments
First Quarter 2015
quarter, slowing from a 6.6 percent growth in the previous quarter,
due to the slowdown in government expenditure and exports.40
In terms of domestic prices of goods, the average inflation rates of
major advanced economies declined in the first quarter of 2015.
In the US, the inflation rate decreased to -0.1 percent during the review
quarter from 1.3 percent a quarter ago. Likewise, inflation rates in
Japan and the euro area decelerated to 2.3 percent and -0.3 percent
relative to 2.6 percent and 0.2 percent, respectively, a quarter ago.
Among emerging Asian economies, inflation rates in Hong Kong,
South Korea, Singapore, China, and India decelerated to 4.4 percent,
0.6 percent, -0.3 percent, 1.3 percent, and -1.8 percent, respectively
from 5.1 percent, 1.0 percent, -0.1 percent, 1.7 percent, and
0.3 percent, a quarter ago.
Global labor market conditions generally improved. The rate of
unemployment in the US eased to 5.6 percent from 5.7 percent in the
previous quarter. Similarly, in the euro area, unemployment rate
declined to 11.3 percent from 11.5 percent in the previous quarter.
In Japan, jobless rate remained unchanged at 3.5 percent. In Asia,
unemployment rate declined in Singapore to 1.8 percent from
1.9 percent a quarter ago. In South Korea, however, jobless rate inched
up to 3.7 percent during the review quarter from the previous
quarter’s 3.5 percent. Meanwhile, unemployment rate in Hong Kong
and China remained steady at 3.3 percent and 4.1 percent,
respectively, relative to the previous quarter. Most ASEAN countries
posted an increase in their unemployment rates.
40 Philippine Statistics Authority
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Report on Economic and Financial Developments
First Quarter 2015
F. Financial Condition of the BSP
Balance Sheet
Based on the preliminary and unaudited statement of financial
condition of the BSP as of end-December 2014, total assets reached
P4,087.5 billion, 0.6 percent or P25.3 billion higher than the
quarter-ago level (Table 17). Relative to the end-December 2013 level,
the amount decreased by 2.7 percent or P114.6 billion.
The BSP’s liabilities increased by P29.9 billion or 0.7 percent, q-o-q, to
P4,043.2 billion, but eased by 2.8 percent or P118.2 billion relative to
the end-December 2013 level. Consequently, the BSP’s net worth
declined to P44.3 billion compared to the quarter-ago level of
P48.9 billion. The amount was, however, slightly higher by 8.7 percent
or P3.5 billion than the P40.8 billion posted at end-December 2013.
BSP’s net worth
improves y-o-y, but
eases q-o-q
-q
Macroeconomic Indicators in Selected Economies
in percent
Q2
2014
Q3
2014
Q4
2014
Q1
2015
Q2
2014
Q3
2014
Q4
2014
Q1
2015
Q2
2014
Q3
2014
Q4
2014
Q1
2015
G3
US 2.6 2.7 2.4 2.7 2.1 1.8 1.3 -0.1 6.2 6.1 5.7 5.6
Japan -0.4 -1.4 -0.9 -1.4 3.6 3.3 2.6 2.3 3.6 3.6 3.5 3.5
Euro area 0.8 0.8 0.9 1.0 0.6 0.4 0.2 -0.3 11.6 11.5 11.5 11.3
Emerging Asia
Hong Kong 2.0 2.9 2.4 2.1 3.7 4.8 5.1 4.4 3.1 3.3 3.3 3.3
South Korea 3.4 3.3 2.7 2.4 1.6 1.4 1.0 0.6 3.7 3.5 3.5 3.7
Singapore 2.3 2.8 2.1 2.6 2.3 0.9 -0.1 -0.3 2.0 1.9 1.9 1.8
China 7.5 7.3 7.3 7.0 3.0 2.3 1.7 1.3 4.1 4.1 4.1 4.1
India 5.7 5.3 n.a. n.a. 5.8 3.9 0.3 -1.8 n.a. n.a. n.a. n.a.
ASEAN
Indonesia 5.0 5.0 5.0 4.7 7.1 4.4 6.5 6.5 5.9 n.a. n.a. n.a.
Malaysia 6.5 5.6 5.7 5.6 3.3 3.0 2.8 0.7 3.0 3.1 2.8 3.1
Philippines 6.7 5.5 6.6 5.2 4.3 4.7 3.6 2.4 7.0 6.7 6.0 6.6
Thailand 0.9 1.0 2.1 3.0 2.5 2.0 1.1 -0.5 1.0 0.8 0.6 1.0
Vietnam 5.2 5.6 6.0 6.0 4.7 4.3 2.6 0.7 1.8 2.2 2.1 2.21
Unemployment ra te is the proportion (in percent) of the tota l number of unemployed to the tota l number of pers ons in the la bor force.
Source: Bloomberg
Country
Real GDP (Y-o-Y Growth Rate) Inflation (Quarterly Average) Unemployment 1
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Report on Economic and Financial Developments
First Quarter 2015
The increase in the BSP’s assets was due largely to the higher level of
Revaluation of International Reserves account, which amounted to
P41.7 billion in Q4 2014, an increase of 459.1 percent or P34.2 billion
from the previous quarter’s P7.5 billion.
Similarly, the BSP’s liabilities increased during the review period as the
unwinding of deposits, particularly from the BSP’s SDAs and Treasurer
of the Philippines account (TOP), was outpaced by the growth of the
Currency Issue account. In particular, issued currencies increased by
P215.0 billion to P929.5 billion from P714.5 billion a quarter ago.
On the other hand, deposits decreased by P184.8 billion to
P2,724.6 billion, notwithstanding, the increase in reserve deposits of
other depository corporations (ODCs) of about 7.9 percent or
P101.3 billion in the fourth quarter. The BSP raised RR by 1.0 percent
each in April and May 2014 as a proactive move to manage potential
risks that could arise from the strong growth in domestic liquidity.41
41 MB meetings on Monetary Policy dated 27 March 2014 and 8 May 2014
in billion pesos
2013
Dec Sep Dec
Assets 4,087.5 4,062.2 4,202.1
Liabilities 4,043.2 4,013.3 4,161.3
Networth 44.3 48.9 40.8
Balance Sheet of the BSP*
2014
* unaudited
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Report on Economic and Financial Developments
First Quarter 2015
Income Statement
Based on preliminary and unaudited data, the BSP registered a net loss
of P6.0 billion for Q4 2014. The BSP, however, posted a lower loss from
operations of P11.3 billion when compared to last year’s P25.1 billion
(Table 18).
Total revenues for the Q4 2014 amounted to P14.1 billion, higher than
the P12.7 billion posted in the previous quarter, as interest income
increased by 14.4 percent from the previous quarter’s aggregate level.
Miscellaneous income, likewise, improved by 8.4 percent or
P0.4 billion, q-o-q.
Total expenditures amounted to P20.0 billion, P0.5 billion higher than
the level posted last quarter. The q-o-q increase in expenditures was
due mainly to higher cost of minting/printing of currency, interest
expense on NG deposits, loans and debt instruments, and other
expenses.
BSP posts a lower
net loss from
operations in 2014
in billion pesos
Q1 Q2 Q3 Q4 Q1-Q4 Q1 Q2 Q3 Q4 Q1-Q4
Revenues 10.524 12.961 12.690 14.082 50.257 15.239 20.830 10.426 10.081 56.576
Less: Expenses 15.097 16.010 19.433 19.961 70.501 23.261 20.634 21.985 19.034 84.914
Net Income Before Gain/Loss (-) on FX
Rate Fluctuations, Provisions for Income
Tax and Capital Reserves
-4.573 -3.049 -6.743 -5.879 -20.244 -8.022 0.196 -11.559 -8.953 -28.338
Add/Less: Gain/Loss (-) on FX Rate
Fluctuations8.978 -0.741 0.852 -0.153 8.936 -6.256 -0.290 8.758 3.386 5.598
Provision for Income Tax 0.000 0.000 0.000 0.000 0.000 0.000 1.718 0.486 0.108 2.312
Net Income Available for Distribution 4.405 -3.790 -5.891 -6.032 -11.308 -14.278 -1.812 -3.287 -5.675 -25.052
2014 2013
* unaudited/preliminary
Income Statement of the BSP*
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G. Challenges and Policy Directions
Global growth for 2015-2016, at 3.5 percent and 3.8 percent,
respectively, is expected to be soft and uneven.42 The US economic
recovery is gaining traction although mitigating this are the structural
weaknesses in the EU and Japan. Meanwhile, EMEs are facing more
subdued growth prospects owing largely to weak external demand.
In contrast, lower oil prices could provide a sizable boost to the global
economy.
Against the present global outlook, a key challenge to the Philippine
economy is the downside risks to external demand which could affect
the country’s export activity as growth in AEs remains uneven.
The recovery in the US could boost the country’s external balance
through export receipts and remittance inflows. However, this could
be moderated by the growth outlook for the EU and Japan, as well as
the relatively subdued prospects in EMEs, particularly China. In
addition, the global economy could enter a new mediocre era, should
the current low-growth conditions persist, which could drag down
external demand in the medium term.
The uneven growth prospects in AEs are also likely to reinforce
divergence in monetary policy. This could encourage further investors’
search for yield which could either lead to more capital inflows to EMs,
where yields remain generally higher, or capital outflows, as the appeal
of US assets increases due to favorable economic trends and the Fed’s
eventual tightening of monetary policy. Thus, EMs, including the
Philippines, could face a reversal in capital flows and exchange rate
pressures.
42 International Monetary Fund (2015). ‘World Economic Outlook.’ April 2015.
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Given the prospect of the US Fed’s normalization of monetary policy,
the Philippines could also face tighter financial conditions owing to
volatilities in the global financial markets. Financial market volatility
could affect real sector activity through bouts of heightened risk
aversion, sharp increases in long- term interest rates, tighter access to
external financing, and possible foreign exchange market pressures.
Heightened risk aversion could push down the prices of financial
assets, thereby generating negative wealth effects and
mark-to-market losses. Rising interest rates and tighter access to
external funding could make long-term credit more costly.
Nevertheless, the potential adverse impact of the Fed’s monetary
normalization on liquidity, interest rates, and capital flows could be
counterbalanced, although not completely offset, by the continued
monetary accommodation in the EU and Japan.
Meanwhile, the decline in international oil prices resulted in the
moderation of domestic inflation momentum. Like most oil-importing
countries, the Philippines stands to benefit from the significant decline
in oil prices which could lead to lower domestic inflation (both headline
and core) and increase in consumption and investment growth. Lower
oil prices likewise provide the BSP flexibility to keep policy rates at
current levels in support of economic growth. Moreover, the risk of a
demand-led deflation in the country is likely to be minimal since
domestic demand conditions remain firm, wages are rigid downwards
and inflation expectations are well anchored.
A critical domestic challenge moving forward is addressing structural
bottlenecks, particularly infrastructure challenges, to lift investment
and realize new growth sources. Efforts by the NG to ramp up spending
and accelerate infrastructure projects will help to raise potential
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output and thereby sustain the growth momentum of the economy.
Toward this end, the PPP initiative of the government is expected to
bridge the infrastructure gap. Moreover, NG has announced that
infrastructure expenditure will be equivalent to 4 percent of GDP in
2015.
Meanwhile, remittances and BPO revenues are expected to remain
significant sources of foreign exchange liquidity, which could provide a
buffer against funding pressures as well as help insulate domestic
demand. Also, with the adequate capitalization levels of the banking
sector and other prudent bank practices, the impact on capital of a
possible increase in banks’ non-performing loans will be manageable.
Moving forward, the BSP will continue to be data-dependent in its
assessment of evolving price and output developments to ensure that
the monetary policy stance remains consistent with ensuring price and
financial stability while supporting sustainable economic growth.
In addition, the BSP remains prepared to deploy a menu of policy
actions, as needed, to rein in inflation expectations even as previous
monetary responses continue to work their way through the economy.
The BSP is prepared to temper any adverse impact of possible capital
outflows on the domestic economy by ensuring adequate level of
liquidity in the financial markets during periods of heightened
uncertainty and increased risk aversion. While guarding against
speculative flows that could lead to the peso’s volatility and undermine
the inflation target, the BSP will continue to maintain a
market-determined exchange rate and a comfortable level of reserves.
On banking regulation and supervision, the BSP intends to sustain the
reform momentum with a view to toughen its resilience against shocks
as well as to boost its role as a catalyst for durable long-term economic
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growth. Toward this end, the BSP continues to pursue measures to
strengthen corporate governance, enhance transparency, expand
financial products and markets, help develop market infrastructure,
and upgrade banking policies and guidelines. The BSP will continue to
craft banking regulations that are responsive, consistent with best
practices and in line with the international financial architecture
reform agenda.
On a broader perspective, the BSP will further foster an enabling
environment to promote greater access to the financial system
through its financial inclusion programs.43 The BSP will continue to
educate the public and further hone their skills to make well-informed
economic and financial decisions. Moreover, the BSP has been
proactively promoting the development of microfinance since 2000,
as a flagship program in support of poverty alleviation. This includes
the Credit Surety Fund (CSF) Program – a credit enhancement scheme
– developed by the BSP that provides a surety cover in lieu of
acceptable collaterals for loans of micro, small and medium enterprises
(MSMEs) from banking institutions.
The BSP also remains proactive in ensuring the credibility of the
payments and settlements system with the continued enhancement of
its processes in accordance with international best practices and
development of the necessary infrastructure through the operation of
the Philippines’ real time gross settlement system or the PhilPaSS.
Finally, amidst the increasing interconnectedness of global financial
markets, the BSP will remain an active participant in regional and
43 To mainstream financial inclusion, the BSP has focused on three areas, namely: (1) broad access to credit
at reasonable rates through responsible and proportionate regulation that encourages market innovation;
(2) timely and relevant economic and financial learning activities; and (3) well-founded financial consumer
protection programs.
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international cooperation programs and fora, in order to reap the
benefits of collaborative engagement.
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Annex A
Banking Policies
Submission of Reports by Banks Acting as Underwriters, Brokers, Dealers and Transfer Agents
of Securities
The BSP is requiring universal, commercial and thrift banks to regularly report the licenses that
said banks have acquired from or are renewing with the Securities and Exchange Commission
(SEC) and other regulatory authorities to perform securities-related operations.
The enhanced reporting requirement will enable the BSP to keep track of what banks have been
authorized to do with respect to underwriting, brokering, dealing and transfer agency functions.
Together with the list of licenses, the banks shall also submit to the BSP their roster of personnel
authorized to perform underwriting functions and to act as securities sales persons or associated
persons.
The roster shall be accompanied by a certification stating that said personnel are duly licensed
to carry out securities operations under relevant laws. The certification shall be signed by the
bank’s president or an officer of equivalent rank.
With the introduction of universal banks in the early 1980s, the Philippines allowed banks to
combine investment banking and securities activities with the traditional commercial banking
function. However, banks are still required to secure appropriate licenses or accreditation for
their securities operations from agencies such as the SEC and the BTr. Additionally, commercial
banks and other banks have also played increasing roles in the securities market.
The reporting initiative underscores the importance of the licensing function to the
management of risks that may be faced by banks from their securities operations and to the
protection of the investments of their customers. Understanding and managing these risks are
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essential to fostering financial stability, which is a key policy objective of the BSP. (BSP Circular
No. 866 dated 7 January 2015)
Amendments to MORB Sec. X151 on the Activities and Services Allowable for Micro-Banking
Offices (MBOs) and Subsec. X151.5 on Branch Processing Fees
The BSP issued a measure that aims to bring financial services to unbanked areas of the country.
The regulation includes a waiver of processing fees for the establishment of branches in
unbanked areas, and an expansion of the allowable activities for MBOs. MBOs are scaled-down
offices that enable banks to establish presence at a relatively lower cost.
Together with the revised rule on branch processing fees, the new regulation widens the scope
of allowable activities and services that MBOs can provide. In addition to the disbursement and
release of proceeds of all types of microfinance loans, MBOs can now provide and service other
types of loans to microfinance clients such as educational loan, health loan and emergency loan,
among others. Interested banks may also apply for BSP approval to increase the limit for the
monthly average daily balance of micro-deposit accounts from the amount maximum of
P40,000.00, subject to certain requirements. The expanded services will still primarily cater to
the needs of the microfinance clients and the prudential requirements and operational controls
will be retained. (Circular No. 868 dated 26 January 2015)
Amendments to Appendix 6 (Reports Required of Banks) and Other Related Subsections of
the Manual of Regulations for Banks (MORB)
As part of BSP’s initiative to rationalize the reports required from banks, Appendix 6, an
appendix to Section x192 and pertinent subsections of the MORB are amended to delete or
revise some reports required to be submitted by banks and certain provisions of these
subsections. (Circular No. 870 dated 20 February 2015)
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Internal Control and Internal Audit
The BSP approved the revised guidelines on internal control and internal audit raising the bar of
control standards for BSP supervised financial institutions (FIs). The guidelines complement
other BSP initiatives to further strengthen the quality of governance in the industry and align
existing regulations with international standards and best practices.
The guidelines feature the fundamental elements of internal control namely, management
oversight and control culture; risk recognition and assessment; control activities; information
and communications; and monitoring activities and correcting deficiencies. These effectively
broaden the regulatory expectations on internal control from previously being limited only to
the implementation of basic internal control activities to promoting shared accountability of the
board and personnel at all levels in the control process. The MB recognizes though, that there
is no “one size fits all” internal control framework. As such, consistent with the principle of
proportionality, FIs are expected to adopt internal control frameworks that are suited to their
size, risk profile and complexity of operations.
The guidelines also cover the BSP’s expectations on the internal audit function, highlighting its
role in assessing and complementing operational management, risk management, compliance
and other control functions. FIs are generally allowed to outsource the internal audit function
to have access to certain areas of expertise or address resource constraints provided that the
scope of audit will not include areas that are covered by existing statutes on deposit secrecy.
The guidelines, however, clarified that arrangements where FIs that are part of group structures
will opt to establish an internal audit function centrally in the parent bank will not fall under the
outsourcing framework provided under existing regulations.
Finally, the qualifications of the head of the internal audit function were expanded so as to
consider professionals from disciplines outside of the accountancy profession. Certified Public
Accountants (CPAs) or Certified Internal Auditors (CIAs) are required for the head of the internal
audit function of a universal/commercial bank. On the other hand, the head of the internal audit
function of thrift, rural, and cooperative banks may be a graduate of any accounting, business,
finance, or economics course but should have the technical proficiency on the conduct of
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internal audit. Regardless of academic background, heads of the internal audit function of all
supervised FIs should meet the prescribed number of years of experience. (Circular No. 871
dated 5 March 2015)
Amendments to the Rules on Delivery of Securities
The BSP amended the rule on the delivery of securities by adding the use of a central securities
depository (CSD) as another option available to investors. The BSP specifically allowed the
“Name-on-Central Depository” facility to be compliant with previously issued Circular No. 392.
This provides greater flexibility to investors on where to place the securities they purchase for
safekeeping and to avail of auxiliary services from the CSD, should the investor desire. A CSD is
an entity authorized under the rules of the SEC and is considered by global best practices as a
key infrastructure in handling securities settlement.
Securities are lodged at the CSD in electronic form and referred to as book-entry system. Instead
of physical pieces of paper securities, an electronic form expedites the transfer of securities
between buyers and sellers. There are specific guidelines put in place to ensure the integrity of
the securities holdings as well as the manner in which securities are delivered against the
availability of payment.
The Name-on-Central Depository facility allows securities to be recorded at the CSD in the name
of individual investors. This provides added transparency for investors. This is in contrast to
being lodged in so-called “omnibus accounts” which aggregate the holdings of all investors but
without segregating the holdings of one investor from another.
Aside from allowing a CSD as an acceptable mode of delivery of securities, the revised rule
requires independence of third party custodians, securities registries and CSDs. Under the
independence provision, these entities must not belong to the financial conglomerate or
banking group that issued or sold the securities to investors which the CSD now holds in
compliance with Circular No. 392 as amended.
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This reform initiative is in line with the broader objective of the BSP to further enhance the
handling of securities for the protection of investors. This is essential to capital market
development and mitigates the potential build-up of systemic risks in the Philippine financial
system. (Circular No. 873 dated 25 March 2015)
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Annex B
Capital Market Reforms
Helping develop market infrastructure
The BSP enhanced rules on delivery of securities by adding the use of a CSD as another option
available to investors. The MB specifically allowed the “Name-on-Central Depository” facility to
be compliant with previously issued Circular No. 392. This provides greater flexibility to investors
on where to place the securities they purchase for safekeeping and to avail of auxiliary services
from the CSD, should the investor desire. A CSD is an entity authorized under the rules of the SEC
and is considered by global best practices as a key infrastructure in handling securities
settlement.
This reform initiative is in line with the broader objective of the BSP to further enhance the
handling of securities for the protection of investors. This is essential to capital market
development and mitigates the potential build-up of systemic risks in the Philippine financial
system.
The BTr signed a Memorandum of Agreement (MOA) with the BIR covering the Specials Repo
program, 44 a key initiative directed to developing the domestic fixed income market. The Specials
Repo will allow market players the ability to quote two-way prices for government securities.
The MOA will set out the proper tax treatment for the Specials Repo, as well as provide guidance
and basic parameters for its structure, operational mechanics and taxation-regulatory
compliance by potential market participants in the program. Under the MOA, the BIR and BTr will
cooperate to ensure proper monitoring of Repo transactions, directed to establishing audit and
surveillance trails and mechanisms to ensure tax assessments and collections in compliance with
tax regulations.
44 The Specials Repo transactions are being envisioned for the interbank/professional market participants. It will be governed by the Global Master
Repurchase Agreement (GMRA), an internationally accepted Repo master agreement developed jointly by the Securities Industry and Financial
Markets Association (SIFMA) and the International Capital Market Association (ICMA). Source: BTr Press Release, 9 January 2015
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Promoting investor confidence
The Insurance Commission (IC) issued the rules and regulations governing the merger and
consolidation of insurance companies under Circular Letter 2015-11. The Circular ensures that
the liabilities of the companies that will be absolved or dissolved in the merger or consolidation,
including existing policies, should be transferred or absorbed by the surviving or resulting
corporations.
The government continuous to encourage more mergers and consolidations to comply with the
increased capitalization requirement for insurance companies in the Philippines and at the same
time, to make local insurance companies competitive especially when the ASEAN integration
starts in 2016.
Enhancing transparency and corporate governance
The Philippine Dealing System Holdings Corporation (PDS Group) launched the Enhanced FX
Market Services on 9 January 2015. The trading platform was developed by the PDS Group and
Thomson Reuters Corporation, allowing market players to buy and sell peso and dollar “in a more
efficient way.” Under the previous platform, market players will have to call their broker before
posting whether they agree or disagree with a price. But with the new system, participants will
post their price in their terminals and the price shows up on the screen. The new trading platform
will lessen the time spent on “negotiating” and thus could result in more liquidity.
The SEC recommended all publicly listed companies to adopt best governance practices
including:
� The Chairman of the Board and the Chief Executive Officer (CEO) should be separate individuals;
� The Chairman of a publicly-listed company (PLC) should not have been the company’s CEO in
the last three years;
� Independent and non-executive directors should not hold more than five concurrent board
seats in PLCs;
� At least one female independent director should be elected;
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� The Notice of the Annual Stockholders Meeting should be released at least 28 days before the
meeting;
� The Audited Financial Reports should be release within 60 days from the end of the Fiscal year;
� The Nominating Committee should be comprised entirely of independent directors;
� The company should use professional search firms or external sources of candidates when
searching for candidates to the board of directors;
� The company should have a separate board level Risk Committee;
� Independent non-executive directors should make up at least 50 percent of the board of
directors;
� The term limit of its independent directors should be limited to nine years from the date of first
appointment; and
� The company’s reporting framework should be consistent with either the Global Reporting
Initiative (GRI) or International Integrated Reporting Council (IIRC).
1 GROSS NATIONAL INCOME AND GROSS DOMESTIC PRODUCT BY INDUSTRIAL ORIGIN
for periods indicated
in million pesos; at constant 2000 prices
2015
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Agriculture, Hunting, Forestry and Fishing 172,589 161,891 158,832 205,666 178,074 161,608 159,353 207,550 179,142 167,048 155,268 216,366 182,051 3.2 -0.2 0.3 0.9 0.6 3.4 -2.6 4.2 1.6
Industry 479,160 510,299 481,188 560,796 534,313 563,612 518,583 602,617 563,087 614,797 559,181 657,628 594,259 11.5 10.4 7.8 7.5 5.4 9.1 7.8 9.1 5.5
Mining and Quarrying 18,074 27,258 13,829 12,885 18,460 27,353 14,524 12,558 20,117 27,935 15,127 13,295 21,554 2.1 0.3 5.0 -2.5 9.0 2.1 4.2 5.9 7.1
Manufacturing 342,235 338,489 323,524 391,463 374,755 373,357 352,194 438,607 400,802 414,742 378,608 472,363 424,355 9.5 10.3 8.9 12.0 7.0 11.1 7.5 7.7 5.9
Construction 67,760 89,095 86,503 104,904 89,489 104,750 89,937 99,932 90,397 112,245 101,681 117,827 94,432 32.1 17.6 4.0 -4.7 1.0 7.2 13.1 17.9 4.5
Electricity, Gas and Water Supply 51,091 55,457 57,331 51,544 51,609 58,152 61,928 51,519 51,771 59,876 63,766 54,142 53,918 1.0 4.9 8.0 0.0 0.3 3.0 3.0 5.1 4.1
Services 828,830 920,110 882,268 943,600 879,631 992,291 947,530 1,004,917 939,276 1,050,348 1,000,705 1,061,170 991,878 6.1 7.8 7.4 6.5 6.8 5.9 5.6 5.6 5.6
Transportation, Storage and Communication 118,204 126,028 106,004 126,620 120,154 134,793 113,082 137,386 129,949 144,074 118,974 143,565 141,104 1.6 7.0 6.7 8.5 8.2 6.9 5.2 4.5 8.6
Trade and Repair of Motor Vehicles, Motorcycles,
Personal and Household Goods 228,899 250,361 276,892 299,520 240,028 270,289 291,498 319,286 254,757 287,956 312,034 330,248 268,528 4.9 8.0 5.3 6.6 6.1 6.5 7.0 3.4 5.4
Financial Intermediation 100,641 116,821 102,054 107,271 118,743 128,810 114,434 118,696 125,519 136,690 124,033 129,243 130,957 18.0 10.3 12.1 10.7 5.7 6.1 8.4 8.9 4.3
Real Estate, Renting and Busines Activities 156,299 176,286 172,861 173,453 165,491 193,360 193,086 186,851 182,376 209,839 206,038 204,989 194,096 5.9 9.7 11.7 7.7 10.2 8.5 6.7 9.7 6.4
Public Administration and Defense;
Compulsory Social Security 61,891 78,198 69,572 65,209 64,481 81,907 72,940 62,996 68,556 82,918 70,795 70,172 68,706 4.2 4.7 4.8 -3.4 6.3 1.2 -2.9 11.4 0.2
Other Services 162,897 172,417 154,885 171,526 170,735 183,133 162,489 179,701 178,120 188,872 168,832 182,954 188,487 4.8 6.2 4.9 4.8 4.3 3.1 3.9 1.8 5.8
Gross Domestic Product 1,480,580 1,592,299 1,522,288 1,710,061 1,592,017 1,717,511 1,625,467 1,815,084 1,681,505 1,832,193 1,715,155 1,935,164 1,768,189 7.5 7.9 6.8 6.1 5.6 6.7 5.5 6.6 5.2
Net Primary Income 298,438 314,980 309,213 331,652 337,317 337,585 370,030 373,757 374,674 364,294 358,528 379,132 384,832 13.0 7.2 19.7 12.7 11.1 7.9 -3.1 1.4 2.7
Gross National Income 1,779,018 1,907,279 1,831,501 2,041,713 1,929,334 2,055,096 1,995,496 2,188,842 2,056,179 2,196,487 2,073,683 2,314,296 2,153,020 8.4 7.8 9.0 7.2 6.6 6.9 3.9 5.7 4.7
Note: Total may not add up due to rounding.
Data on real GDP and its components are based on 2000 prices. The use of terminology Gross National Income (GNI) in place of Gross National Product (GNP) has been adopted in the revised/rebased Philippine System of National Accounts (PSNA) in accordance with the 1993/1998 System of National Accounts
prescribed by the United Nations.
Source of basic data: Philippine Statistics Authority (PSA)*
* Republic Act No. 10625 signed on 12 September 2013 mandated the reorganization of the Philippine Statistical System (PSS) and the creation of the PSA which merged the major statistical agencies engaged in primary data collection and compilation of secondary data, namely: National Statistics Office (NSO),
National Statistical Coordination Board (NSCB), Bureau of Agricultural Statistics (BAS) and Bureau of Labor and Employment Statistics (BLES).
2015Annual Change (in %)
2012 2013 20142013 2014
1a GROSS NATIONAL INCOME AND GROSS DOMESTIC PRODUCT BY EXPENDITURE SHARES
for periods indicated
in million pesos; at constant 2000 prices
2015
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Household Final Consumption Expenditure 1,035,983 1,092,699 1,051,037 1,262,804 1,092,750 1,147,354 1,116,742 1,335,591 1,159,901 1,213,137 1,171,822 1,402,140 1,222,122 5.5 5.0 6.3 5.8 6.1 5.7 4.9 5.0 5.4
Government Final Consumption Expenditure 166,855 197,699 163,666 143,957 178,984 216,215 170,751 139,861 182,405 216,265 166,398 153,029 191,164 7.3 9.4 4.3 -2.8 1.9 0.0 -2.5 9.4 4.8
Capital Formation 230,730 230,404 303,660 399,924 326,841 304,916 387,305 468,841 368,527 330,285 386,668 482,866 412,165 41.7 32.3 27.5 17.2 12.8 8.3 -0.2 3.0 11.8
Fixed Capital 314,349 297,917 311,559 361,355 369,433 339,412 341,653 390,977 375,761 362,946 378,235 422,184 413,894 17.5 13.9 9.7 8.2 1.7 6.9 10.7 8.0 10.1
Construction 104,052 130,086 132,530 161,901 140,125 152,642 138,325 155,638 138,762 168,647 157,616 185,590 146,714 34.7 17.3 4.4 -3.9 -1.0 10.5 13.9 19.2 5.7
Durable Equipment 175,124 138,699 151,520 158,768 193,382 157,048 174,858 195,648 201,163 163,057 188,278 195,412 229,883 10.4 13.2 15.4 23.2 4.0 3.8 7.7 -0.1 14.3
Breeding Stock & Orchard Development 27,158 23,146 18,814 30,949 27,314 22,910 18,638 27,201 26,106 22,467 19,001 27,838 26,123 0.6 -1.0 -0.9 -12.1 -4.4 -1.9 1.9 2.3 0.1
Intellectual Property Products 8,016 5,986 8,695 9,736 8,610 6,812 9,832 12,490 9,731 8,775 13,340 13,343 11,175 7.4 13.8 13.1 28.3 13.0 28.8 35.7 6.8 14.8
Changes in Inventories -83,620 -67,513 -7,899 38,569 -42,592 -34,496 45,652 77,864 -7,234 -32,661 8,434 60,682 -1,729 49.1 48.9 678.0 101.9 -83.0 5.3 -81.5 -22.1 -76.1
Exports 774,617 876,859 774,933 627,881 716,209 822,217 841,988 644,454 807,442 887,453 943,915 727,143 815,568 -7.5 -6.2 8.7 2.6 12.7 7.9 12.1 12.8 1.0
Less: Imports 717,084 803,657 772,121 735,617 727,481 766,122 894,398 772,939 846,245 803,283 936,626 849,224 884,917 1.4 -4.7 15.8 5.1 16.3 4.9 4.7 9.9 4.6
Statistical Discrepancy -10,521 -1,704 1,113 11,112 4,715 -7,069 3,079 -725 9,476 -11,663 -17,022 19,209 12,087 144.8 -314.9 176.7 -106.5 101.0 -65.0 -652.9 2,750.1 27.5
Gross Domestic Product 1,480,580 1,592,299 1,522,288 1,710,061 1,592,017 1,717,511 1,625,467 1,815,084 1,681,505 1,832,193 1,715,155 1,935,164 1,768,189 7.5 7.9 6.8 6.1 5.6 6.7 5.5 6.6 5.2
Net Primary Income 298,438 314,980 309,213 331,652 337,317 337,585 370,030 373,757 374,674 364,294 358,528 379,132 384,832 13.0 7.2 19.7 12.7 11.1 7.9 -3.1 1.4 2.7
Gross National Income 1,779,018 1,907,279 1,831,501 2,041,713 1,929,334 2,055,096 1,995,496 2,188,842 2,056,179 2,196,487 2,073,683 2,314,296 2,153,020 8.4 7.8 9.0 7.2 6.6 6.9 3.9 5.7 4.7
Note: Total may not add up due to rounding.
Data on real GDP and its components are based on 2000 prices. The use of terminology Gross National Income (GNI) in place of Gross National Product (GNP) has been adopted in the revised/rebased Philippine System of National Accounts (PSNA) in accordance with the 1993/1998 System of National Accounts
prescribed by the United Nations.
Source of basic data: Philippine Statistics Authority (PSA)*
* Republic Act No. 10625 signed on 12 September 2013 mandated the reorganization of the Philippine Statistical System (PSS) and the creation of the PSA which merged the major statistical agencies engaged in primary data collection and compilation of secondary data, namely: National Statistics Office (NSO),
National Statistical Coordination Board (NSCB), Bureau of Agricultural Statistics (BAS) and Bureau of Labor and Employment Statistics (BLES).
2015Annual Change (in %)
20142012 2013 2014
2013
2 SELECTED LABOR, EMPLOYMENT AND WAGE INDICATORS
with
Region
VIII
without
Region
VIII
with
Leyte
without
Leyte
with
Leyte
without
Leyte
with
Leyte
without
Leyte
with
Region
VIII
without
Region
VIII
with
Region
VIII
without
Region
VIII
with
Leyte
without
Leyte
with
Leyte
without
Leyte
with
Leyte
without
Leyte
with
Region
VIII
without
Region
VIII
with
Region
VIII
without
Region
VIII
without
Leyte
Employment Status 1
Labor Force (in thousands) 40,834 38,913 40,906 40,057 41,178 40,351 41,172 40,396 41,022 39,088 39,387 41,588 41,231 41,322 40,050 40,090 41,144
Employed 37,940 36,137 37,819 37,011 38,175 37,390 38,537 37,793 38,118 36,286 36,418 38,664 38,453 38,839 37,310 37,455 38,429
Unemployed 2,894 2,776 3,087 3,046 3,002 2,961 2,635 2,603 2,905 2,801 2,969 2,924 2,778 2,483 2,740 2,635 2,716
Underemployed 7,934 7,464 7,251 7,096 7,340 7,169 6,961 6,789 7,371 6,912 7,103 7,027 7,049 7,279 6,870 6,548 6,879
Labor Force Participation Rate (%) 64.1 64.1 63.8 63.9 63.9 63.9 63.9 63.9 63.9 63.9 63.8 65.2 64.4 64.3 64.4 63.8 63.7
Employment Rate (%) 92.9 92.9 92.5 92.4 92.7 92.7 93.6 93.6 92.9 92.8 92.5 93.0 93.3 94.0 93.2 93.4 93.4
Unemployment Rate (%) 7.1 7.1 7.5 7.6 7.3 7.3 6.4 6.4 7.1 7.2 7.5 7.0 6.7 6.0 6.8 6.6 6.6
Underemployment Rate (%) 20.9 20.7 19.2 19.2 19.2 19.2 18.1 18.0 19.3 19.0 19.5 18.2 18.3 18.7 18.4 17.5 17.9
Overseas Employment (Deployed, in thousands) 471 495 464 406 1,836 513 468 439 225 1,645
Land-based 375 405 373 317 1,469 413 377 349 152 1,292
Sea-based 96 90 91 89 367 99 91 90 73 354
Strikes
Number of New Strikes 0 1 0 0 1 0 0 0 2 2
Number of Workers Involved 0 400 0 0 400 0 0 0 51 51
Nominal Daily Wage Rates 2 (in pesos)
Non-Agricultural
NCR 456.0 456.0 456.0 466.0 466.0 466.0 466.0 466.0 466.0 466.0 466.0
Regions Outside NCR 349.5 349.5 349.5 349.5 349.5 349.5 362.5 362.5 362.5 362.5 362.5
Agricultural
NCR
Plantation 419.0 419.0 419.0 429.0 429.0 429.0 429.0 429.0 429.0 429.0 429.0
Non-Plantation 419.0 419.0 419.0 429.0 429.0 429.0 429.0 429.0 429.0 429.0 429.0
Regions Outside NCR
Plantation 324.5 324.5 324.5 324.5 324.5 324.5 337.5 337.5 337.5 337.5 337.5
Non-Plantation 309.0 309.0 309.0 309.0 309.0 322.0 322.0 322.0 322.0 322.0 322.0
Real Daily Wage Rates 3
(in pesos), 2006=100
Non-Agricultural
NCR 363.4 361.3 359.3 362.4 362.4 361.0 356.5 354.6 356.5 356.5 354.1
Regions Outside NCR 265.4 262.6 260.4 256.8 256.8 255.9 261.7 259.3 260.2 260.2 259.3
Agricultural
NCR
Plantation 333.9 332.0 330.2 333.6 333.6 332.3 328.2 326.5 328.2 328.2 326.0
Non-Plantation 333.9 332.0 330.2 333.6 333.6 332.3 328.2 326.5 328.2 328.2 326.0
Regions Outside NCR
Plantation 246.4 243.8 241.8 238.4 238.4 237.6 243.7 241.4 242.3 242.3 241.4
Non-Plantation 232.7 230.9 226.9 224.1 224.1 230.3 226.9 225.0 224.7 224.7 224.4
Notes:1 Starting with January 2007 LFS round, the population projection based on the 2000 Census of Population was adopted to generate the labor force statistics per NSCB Resolution No. 1 Series of 2005.
2 Source of data for both nominal and real wage rates is the National Wages and Productivity Commission; includes basic minimum wage and cost of living allowance (COLA); starting 2006, annual average/total is as of December.
3 Starting 10 November 1990, adjustments in the minimum legislated wage rates are being determined by the Regional Tripartite Wages Productivity Board; starting 2010, real terms is computed using 2006 as base year.
p Preliminary
Sources of data: Philippine Overseas Employment Administration (POEA), National Wages and Productivity Commission (NWPC), National Conciliation and Mediation Board and Philippine Statistics Authority (PSA)*. * Republic Act No. 10625 signed on 12 September 2013 mandated the reorganization of the Philippine Statistical System (PSS) and the creation of the PSA which merged the major statistical agencies engaged in primary data collection
and compilation of secondary data, namely: National Statistics Office (NSO), National Statistical Coordination Board (NSCB), Bureau of Agricultural Statistics (BAS) and Bureau of Labor and Employment Statistics (BLES).
2013 2014 2015
Q1 Q2 Q3 Q4 Average/Total Q1 Q2 Q3 Q4 Average/Total Q1
3 CASH OPERATIONS OF THE NATIONAL GOVERNMENT
for periods indicated; in billion pesos
2015
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1
Revenues 361.0 399.9 358.0 416.0 364.3 475.1 427.1 449.5 398.4 535.3 491.3 483.5 470.5 484.1
Tax 302.3 369.7 324.9 364.3 316.7 429.6 387.7 401.2 355.2 469.0 449.7 446.2 402.9 445.6
Non-tax 58.7 30.3 33.2 51.7 47.6 45.5 39.4 48.3 43.2 66.3 41.6 37.3 67.6 38.5
Expenditures 394.9 400.4 427.6 554.9 430.8 460.0 477.0 512.4 482.5 505.2 468.4 525.5 504.0 582.2
Interest Payments 98.5 51.5 95.2 67.6 98.3 58.8 101.0 65.3 103.1 56.6 97.7 63.8 100.6 100.6
Equity 0.0 0.9 0.0 20.4 0.2 0.1 0.2 10.9 0.1 0.3 0.8 0.5 0.1 1.0
Net Lending 3.2 8.5 10.4 5.4 -8.1 4.7 5.6 14.4 4.9 1.5 2.0 5.0 2.2 5.0
Subsidy 5.6 7.1 5.7 24.2 4.2 9.0 22.2 30.9 1.2 48.3 12.7 18.2 3.7 9.3
Allotment to LGUs 71.0 78.4 74.1 74.9 80.3 83.6 76.9 76.5 85.1 89.0 85.8 84.4 96.3 78.0
Tax Expenditures 7.3 7.6 3.4 14.1 0.6 11.2 2.6 4.6 0.1 12.3 0.7 12.9 5.6 1.2
Others 209.3 246.4 238.7 348.3 255.3 292.5 268.6 309.7 288.0 297.1 268.7 340.8 295.5 387.2
Surplus/Deficit (-) -33.9 -0.5 -69.6 -138.9 -66.5 15.2 -49.9 -62.8 -84.1 30.1 22.9 -42.0 -33.5 -98.1
Financing 1
162.5 12.2 91.2 272.3 -0.8 88.6 178.1 53.2 7.0 31.3 69.9 67.0 -4.0 144.2
External Borrowings 66.8 -5.7 -10.4 19.3 -49.3 -15.2 -11.6 -7.8 -4.2 -5.3 26.6 -4.6 22.6 39.6
Domestic Borrowings 95.7 17.9 101.6 253.0 48.5 103.8 189.6 61.0 11.2 36.6 43.3 71.6 -26.6 104.6
Total Change in Cash: Deposit/Withdrawal (-) 164.7 -23.9 -45.5 196.5 -182.2 85.9 142.1 20.1 -170.8 88.5 85.5 34.6 30.7 44.4
Budgetary 128.6 11.7 21.7 133.4 -67.3 103.8 128.1 -9.6 -77.1 61.5 92.8 25.0 -37.5 46.0
Non-Budgetary Accounts 2
36.1 -35.6 -67.1 63.1 -114.9 -17.9 14.0 29.7 -93.7 27.0 -7.4 9.6 68.2 -1.6
Note: Details may not add up due to rounding.1
Availment less repayment2
Refers to accounts not included in the NG budget, e.g., sale, purchase or redemption of government securities, but included in the cash operations report to show the complete relations in the movements of the cash accounts.
Source of Data: Bureau of the Treasury (BTr)
2012 2013 2014 2015PROGRAM
5
4 CONSUMER PRICE INDEX IN THE PHILIPPINES (2006=100)
for periods indicated; quarterly averages
2015
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
All Items 128.2 129.7 131.2 131.4 132.3 133.2 134.4 135.9 137.7 139.0 140.7 140.8 141.1
Food, and Non-Alcoholic Beverages 138.0 138.9 141.0 141.5 141.7 142.2 144.1 147.1 149.7 151.8 155.6 156.4 156.9
Food Items 139.2 140.1 142.3 142.7 142.9 143.3 145.4 148.6 151.3 153.5 157.5 158.4 158.8
Alcoholic Beverages, Tobacco and Narcotics 125.8 128.4 129.7 130.8 158.4 168.5 170.1 171.1 173.6 175.2 176.1 177.8 180.5
Non-Food 121.9 123.7 124.8 124.8 125.3 126.0 126.7 127.4 128.6 129.3 129.7 129.2 129.4
Clothing and Footwear 120.9 123.7 125.3 125.9 126.8 128.2 129.1 129.7 131.3 132.5 133.5 134.1 135.4
Housing, Water, Electricity, Gas and Other Fuels 123.4 125.9 127.2 126.5 126.9 127.7 127.8 129.1 130.9 131.5 130.9 129.6 129.4
Furnishings, Household Equipment and
Routing Maintenance of the House 118.2 120.6 122.4 123.2 124.0 125.0 125.5 126.0 127.4 128.1 128.9 129.4 130.2
Health 126.2 128.0 129.3 129.8 130.7 131.8 132.7 133.2 135.0 135.8 137.2 137.7 138.6
Transport 125.2 126.3 125.5 125.9 126.3 126.1 126.8 126.9 127.7 127.8 128.2 126.9 126.8
Communication 92.2 92.5 92.6 92.6 92.7 92.6 92.7 92.6 92.7 92.7 92.7 92.7 92.6
Recreation and Culture 108.3 109.3 110.1 110.2 110.7 111.6 112.8 112.9 113.5 113.8 114.3 114.6 114.8
Education 132.9 134.8 138.7 138.7 138.7 140.8 145.2 145.2 145.2 147.5 152.6 152.6 152.6
Restaurants and Miscellaneous Goods and Services 121.5 123.0 123.8 124.2 125.0 125.9 126.5 126.9 127.6 128.3 128.7 129.2 129.6
2015
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
All Items 0.5 1.2 1.2 0.2 0.7 0.7 0.9 1.1 1.3 0.9 1.2 0.1 0.2
Food, and Non-Alcoholic Beverages -0.1 0.7 1.5 0.4 0.1 0.4 1.3 2.1 1.8 1.4 2.5 0.5 0.3
Food Items -0.1 0.6 1.6 0.3 0.1 0.3 1.5 2.2 1.8 1.5 2.6 0.6 0.3
Alcoholic Beverages, Tobacco and Narcotics 1.0 2.1 1.0 0.8 21.1 6.4 0.9 0.6 1.5 0.9 0.5 1.0 1.5
Non-Food 1.0 1.5 0.9 0.0 0.4 0.6 0.6 0.6 0.9 0.5 0.3 -0.4 0.2
Clothing and Footwear 0.8 2.3 1.3 0.5 0.7 1.1 0.7 0.5 1.2 0.9 0.8 0.4 1.0
Housing, Water, Electricity, Gas and Other Fuels 1.4 2.0 1.0 -0.6 0.3 0.6 0.1 1.0 1.4 0.5 -0.5 -1.0 -0.2
Furnishings, Household Equipment and
Routing Maintenance of the House 0.5 2.0 1.5 0.7 0.6 0.8 0.4 0.4 1.1 0.5 0.6 0.4 0.6
Health 0.6 1.4 1.0 0.4 0.7 0.8 0.7 0.4 1.4 0.6 1.0 0.4 0.7
Transport 0.9 0.9 -0.6 0.3 0.3 -0.2 0.6 0.1 0.6 0.1 0.3 -1.0 -0.1
Communication 0.0 0.3 0.1 0.0 0.1 -0.1 0.1 -0.1 0.1 0.0 0.0 0.0 -0.1
Recreation and Culture 0.8 0.9 0.7 0.1 0.5 0.8 1.1 0.1 0.5 0.3 0.4 0.3 0.2
Education 0.1 1.4 2.9 0.0 0.0 1.5 3.1 0.0 0.0 1.6 3.5 0.0 0.0
Restaurants and Miscellaneous Goods and Services 0.9 1.2 0.7 0.3 0.6 0.7 0.5 0.3 0.6 0.5 0.3 0.4 0.3
2015
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
All Items 3.1 2.9 3.6 3.0 3.2 2.7 2.4 3.4 4.1 4.4 4.7 3.6 2.4
Food, and Non-Alcoholic Beverages 2.1 2.0 3.1 2.5 2.7 2.4 2.2 4.0 5.6 6.8 8.0 6.3 4.8
Food Items 2.0 2.0 3.2 2.4 2.7 2.3 2.2 4.1 5.9 7.1 8.3 6.6 5.0
Alcoholic Beverages, Tobacco and Narcotics 4.8 5.0 4.9 5.0 25.9 31.2 31.1 30.8 9.6 4.0 3.5 3.9 4.0
Non-Food 3.9 3.7 3.7 3.4 2.8 1.9 1.5 2.1 2.6 2.6 2.4 1.4 0.6
Clothing and Footwear 3.8 5.0 5.0 5.0 4.9 3.6 3.0 3.0 3.5 3.4 3.4 3.4 3.1
Housing, Water, Electricity, Gas and Other Fuels 4.8 4.4 5.0 3.9 2.8 1.4 0.5 2.1 3.2 3.0 2.4 0.4 -1.1
Furnishings, Household Equipment and
Routing Maintenance of the House 2.2 3.4 4.3 4.8 4.9 3.6 2.5 2.3 2.7 2.5 2.7 2.7 2.2
Health 2.8 3.4 3.4 3.4 3.6 3.0 2.6 2.6 3.3 3.0 3.4 3.4 2.6
Transport 4.3 2.3 1.2 1.5 0.9 -0.2 1.0 0.8 1.1 1.3 1.1 0.0 -0.7
Communication -0.3 0.1 0.2 0.4 0.5 0.1 0.1 0.0 0.0 0.1 0.0 0.1 -0.1
Recreation and Culture 2.4 2.6 2.7 2.6 2.2 2.1 2.5 2.5 2.5 2.0 1.3 1.5 1.2
Education 4.8 4.7 4.5 4.4 4.4 4.5 4.7 4.7 4.7 4.8 5.1 5.1 5.1
Restaurants and Miscellaneous Goods and Services 3.1 3.4 3.3 3.2 2.9 2.4 2.2 2.2 2.1 1.9 1.7 1.8 1.5
Source of basic data: Philippine Statistics Authority (PSA)*
* Republic Act No. 10625 signed on 12 September 2013 mandated the reorganization of the Philippine Statistical System (PSS) and the creation of the PSA which merged the major statistical agencies
engaged in primary data collection and compilation of secondary data, namely: National Statistics Office (NSO), National Statistical Coordination Board (NSCB), Bureau of Agricultural Statistics (BAS)
and Bureau of Labor and Employment Statistics (BLES).
2012 2013
Quarter-on-Quarter Change (in percent)
Year-on-Year Change (in percent)
2012 2013 2014
2014
2012 2013 2014
4a CONSUMER PRICE INDEX IN THE NATIONAL CAPITAL REGION (2006=100)
for periods indicated; quarterly averages
2015
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
All Items 122.9 123.7 125.6 125.4 125.7 125.8 126.5 127.8 129.2 130.3 131.4 131.0 131.6
Food, and Non-Alcoholic Beverages 131.6 132.0 135.3 135.2 134.9 134.7 136.5 139.6 141.3 143.3 147.1 147.6 147.6
Food Items 132.7 133.0 136.5 136.3 135.9 135.7 137.6 141.0 142.8 144.9 149.0 149.5 149.4
Alcoholic Beverages, Tobacco and Narcotics 120.4 122.5 124.2 126.5 140.3 144.7 145.8 146.5 151.2 152.6 153.2 153.9 155.1
Non-Food 119.4 120.3 121.7 121.4 121.7 121.8 122.0 122.6 123.8 124.6 124.6 123.8 124.7
Clothing and Footwear 123.1 126.6 129.8 130.4 131.1 132.3 132.6 132.8 135.5 136.8 138.2 139.1 140.6
Housing, Water, Electricity, Gas and Other Fuels 121.8 122.9 124.5 123.4 123.5 123.5 123.0 124.2 125.5 126.3 125.0 123.3 124.1
Furnishings, Household Equipment and
Routing Maintenance of the House 112.7 114.1 117.7 119.2 120.5 120.8 120.8 121.1 123.7 124.7 125.6 126.2 126.3
Health 130.0 130.8 132.4 132.6 134.5 134.7 136.5 136.6 139.7 140.4 143.4 143.6 145.3
Transport 114.9 114.4 113.8 114.3 114.2 113.5 114.2 114.6 115.6 115.6 115.6 113.7 116.5
Communication 93.1 93.7 93.9 93.9 93.9 93.9 93.9 93.9 94.1 94.1 94.1 94.1 94.1
Recreation and Culture 110.2 111.1 112.5 112.5 113.1 114.1 114.8 114.8 115.9 116.7 117.6 117.9 118.5
Education 135.5 137.0 140.0 140.0 140.0 142.1 146.2 146.2 146.2 149.0 154.5 154.5 154.5
Restaurants and Miscellaneous Goods and Services 119.5 119.9 120.7 120.7 120.9 121.1 121.2 121.3 121.8 122.7 123.1 123.1 123.3
2015
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
All Items 0.7 0.7 1.5 -0.2 0.2 0.1 0.6 1.0 1.1 0.9 0.8 -0.3 0.5
Food, and Non-Alcoholic Beverages -1.0 0.3 2.5 -0.1 -0.2 -0.1 1.3 2.3 1.2 1.4 2.7 0.3 0.0
Food Items -1.1 0.2 2.6 -0.1 -0.3 -0.1 1.4 2.5 1.3 1.5 2.8 0.3 -0.1
Alcoholic Beverages, Tobacco and Narcotics 0.8 1.7 1.4 1.9 10.9 3.1 0.8 0.5 3.2 0.9 0.4 0.5 0.8
Non-Food 1.4 0.8 1.2 -0.2 0.2 0.1 0.2 0.5 1.0 0.6 0.0 -0.6 0.7
Clothing and Footwear 1.5 2.8 2.5 0.5 0.5 0.9 0.2 0.2 2.0 1.0 1.0 0.7 1.1
Housing, Water, Electricity, Gas and Other Fuels 1.5 0.9 1.3 -0.9 0.1 0.0 -0.4 1.0 1.0 0.6 -1.0 -1.4 0.6
Furnishings, Household Equipment and
Routing Maintenance of the House 0.3 1.2 3.2 1.3 1.1 0.2 0.0 0.2 2.1 0.8 0.7 0.5 0.1
Health 0.8 0.6 1.2 0.2 1.4 0.1 1.3 0.1 2.3 0.5 2.1 0.1 1.2
Transport 1.1 -0.4 -0.5 0.4 -0.1 -0.6 0.6 0.4 0.9 0.0 0.0 -1.6 2.5
Communication -0.1 0.6 0.2 0.0 0.0 0.0 0.0 0.0 0.2 0.0 0.0 0.0 0.0
Recreation and Culture 2.7 0.8 1.3 0.0 0.5 0.9 0.6 0.0 1.0 0.7 0.8 0.3 0.5
Education 0.0 1.1 2.2 0.0 0.0 1.5 2.9 0.0 0.0 1.9 3.7 0.0 0.0
Restaurants and Miscellaneous Goods and Services 2.6 0.3 0.7 0.0 0.2 0.2 0.1 0.1 0.4 0.7 0.3 0.0 0.2
2015
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
All Items 2.8 2.3 3.6 2.7 2.3 1.7 0.7 1.9 2.8 3.6 3.9 2.5 1.9
Food, and Non-Alcoholic Beverages 1.0 1.1 3.7 1.7 2.5 2.0 0.9 3.3 4.7 6.4 7.8 5.7 4.4
Food Items 0.9 1.0 3.7 1.6 2.4 2.0 0.8 3.4 5.1 6.8 8.3 6.0 4.6
Alcoholic Beverages, Tobacco and Narcotics 2.4 3.0 4.3 5.9 16.5 18.1 17.4 15.8 7.8 5.5 5.1 5.1 2.6
Non-Food 3.6 2.8 3.7 3.1 1.9 1.2 0.2 1.0 1.7 2.3 2.1 1.0 0.7
Clothing and Footwear 3.7 6.5 7.1 7.5 6.5 4.5 2.2 1.8 3.4 3.4 4.2 4.7 3.8
Housing, Water, Electricity, Gas and Other Fuels 4.5 3.1 4.4 2.8 1.4 0.5 -1.2 0.6 1.6 2.3 1.6 -0.7 -1.1
Furnishings, Household Equipment and
Routing Maintenance of the House 0.5 1.7 4.8 6.0 6.9 5.9 2.6 1.6 2.7 3.2 4.0 4.2 2.1
Health 2.6 3.0 2.8 2.8 3.5 3.0 3.1 3.0 3.9 4.2 5.1 5.1 4.0
Transport 3.7 0.1 -0.2 0.5 -0.6 -0.8 0.4 0.3 1.2 1.9 1.2 -0.8 0.8
Communication -0.5 0.3 0.6 0.8 0.9 0.2 0.0 0.0 0.2 0.2 0.2 0.2 0.0
Recreation and Culture 2.5 3.4 4.8 4.8 2.6 2.7 2.0 2.0 2.5 2.3 2.4 2.7 2.3
Education 3.8 3.6 3.3 3.3 3.3 3.7 4.4 4.4 4.4 4.9 5.7 5.7 5.7
Restaurants and Miscellaneous Goods and Services 4.1 3.5 3.8 3.6 1.2 1.0 0.4 0.5 0.7 1.3 1.6 1.5 1.2
Source of basic data: Philippine Statistics Authority (PSA)*
* Republic Act No. 10625 signed on 12 September 2013 mandated the reorganization of the Philippine Statistical System (PSS) and the creation of the PSA which merged the major statistical agencies
engaged in primary data collection and compilation of secondary data, namely: National Statistics Office (NSO), National Statistical Coordination Board (NSCB), Bureau of Agricultural Statistics (BAS)
and Bureau of Labor and Employment Statistics (BLES).
Year-on-Year Change (in percent)
2013 2014
2012 2013
2012 2013 2014
2014
2012
Quarter-on-Quarter Change (in percent)
4b CONSUMER PRICE INDEX IN AREAS OUTSIDE THE NATIONAL CAPITAL REGION (2006=100)
for periods indicated; quarterly averages
2015
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
All Items 129.8 131.6 133.0 133.3 134.4 135.5 136.8 138.5 140.4 141.7 143.6 143.8 144.1
Food, and Non-Alcoholic Beverages 139.3 140.4 142.2 142.8 143.2 143.7 145.7 148.7 151.4 153.5 157.4 158.3 158.8
Food Items 140.5 141.5 143.5 144.0 144.4 144.8 147.0 150.1 153.0 155.2 159.3 160.2 160.7
Alcoholic Beverages, Tobacco and Narcotics 126.8 129.6 130.8 131.6 162.1 173.3 175.0 176.0 178.1 179.7 180.7 182.6 185.6
Non-Food 122.8 125.1 126.0 126.1 126.7 127.7 128.6 129.3 130.6 131.2 131.7 131.3 131.2
Clothing and Footwear 120.2 122.7 123.9 124.4 125.4 126.8 127.9 128.6 130.0 131.0 131.9 132.5 133.7
Housing, Water, Electricity, Gas and Other Fuels 124.1 127.3 128.4 128.0 128.4 129.5 130.0 131.4 133.4 133.9 133.6 132.4 131.8
Furnishings, Household Equipment and
Routing Maintenance of the House 120.2 122.9 124.0 124.7 125.3 126.5 127.2 127.8 128.7 129.3 130.0 130.5 131.6
Health 125.1 127.2 128.5 129.0 129.7 131.0 131.7 132.3 133.7 134.6 135.5 136.1 136.7
Transport 128.4 130.0 129.1 129.5 130.1 130.0 130.7 130.7 131.4 131.7 132.1 131.0 130.0
Communication 91.8 91.9 92.0 92.0 92.1 92.0 92.1 92.0 92.1 92.1 92.0 92.0 91.9
Recreation and Culture 107.7 108.7 109.2 109.4 109.8 110.8 112.1 112.3 112.6 112.8 113.2 113.4 113.6
Education 132.1 134.2 138.3 138.3 138.3 140.4 144.9 144.9 144.9 147.1 152.0 152.0 152.0
Restaurants and Miscellaneous Goods and Services 122.5 124.3 125.2 125.8 126.8 128.0 128.7 129.4 130.2 130.8 131.2 131.9 132.4
2015
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
All Items 0.4 1.4 1.1 0.2 0.8 0.8 1.0 1.2 1.4 0.9 1.3 0.1 0.2
Food, and Non-Alcoholic Beverages 0.1 0.8 1.3 0.4 0.3 0.3 1.4 2.1 1.8 1.4 2.5 0.6 0.3
Food Items 0.0 0.7 1.4 0.3 0.3 0.3 1.5 2.1 1.9 1.4 2.6 0.6 0.3
Alcoholic Beverages, Tobacco and Narcotics 1.0 2.2 0.9 0.6 23.2 6.9 1.0 0.6 1.2 0.9 0.6 1.1 1.6
Non-Food 0.7 1.9 0.7 0.1 0.5 0.8 0.7 0.5 1.0 0.5 0.4 -0.3 -0.1
Clothing and Footwear 0.6 2.1 1.0 0.4 0.8 1.1 0.9 0.5 1.1 0.8 0.7 0.5 0.9
Housing, Water, Electricity, Gas and Other Fuels 1.3 2.6 0.9 -0.3 0.3 0.9 0.4 1.1 1.5 0.4 -0.2 -0.9 -0.5
Furnishings, Household Equipment and
Routing Maintenance of the House 0.6 2.2 0.9 0.6 0.5 1.0 0.6 0.5 0.7 0.5 0.5 0.4 0.8
Health 0.4 1.7 1.0 0.4 0.5 1.0 0.5 0.5 1.1 0.7 0.7 0.4 0.4
Transport 0.8 1.2 -0.7 0.3 0.5 -0.1 0.5 0.0 0.5 0.2 0.3 -0.8 -0.8
Communication 0.0 0.1 0.1 0.0 0.1 -0.1 0.1 -0.1 0.1 0.0 -0.1 0.0 -0.1
Recreation and Culture 0.3 0.9 0.5 0.2 0.4 0.9 1.2 0.2 0.3 0.2 0.4 0.2 0.2
Education 0.1 1.6 3.1 0.0 0.0 1.5 3.2 0.0 0.0 1.5 3.3 0.0 0.0
Restaurants and Miscellaneous Goods and Services 0.3 1.5 0.7 0.5 0.8 0.9 0.5 0.5 0.6 0.5 0.3 0.5 0.4
2015
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
All Items 3.2 3.1 3.6 3.1 3.5 3.0 2.9 3.9 4.5 4.6 5.0 3.8 2.6
Food, and Non-Alcoholic Beverages 2.2 2.2 3.0 2.6 2.8 2.4 2.5 4.1 5.7 6.8 8.0 6.5 4.9
Food Items 2.2 2.1 3.1 2.5 2.8 2.3 2.4 4.2 6.0 7.2 8.4 6.7 5.0
Alcoholic Beverages, Tobacco and Narcotics 5.3 5.4 4.9 4.8 27.8 33.7 33.8 33.7 9.9 3.7 3.3 3.7 4.2
Non-Food 4.0 4.0 3.7 3.4 3.2 2.1 2.1 2.5 3.1 2.7 2.4 1.5 0.5
Clothing and Footwear 3.8 4.5 4.5 4.1 4.3 3.3 3.2 3.4 3.7 3.3 3.1 3.0 2.8
Housing, Water, Electricity, Gas and Other Fuels 5.0 5.0 5.3 4.5 3.5 1.7 1.2 2.7 3.9 3.4 2.8 0.8 -1.1
Furnishings, Household Equipment and
Routing Maintenance of the House 2.8 4.0 4.2 4.4 4.2 2.9 2.6 2.5 2.7 2.2 2.2 2.1 2.3
Health 2.8 3.5 3.6 3.5 3.7 3.0 2.5 2.6 3.1 2.7 2.9 2.9 2.2
Transport 4.5 2.8 1.6 1.6 1.3 0.0 1.2 0.9 1.0 1.3 1.1 0.2 -1.1
Communication -0.2 -0.1 0.0 0.2 0.3 0.1 0.1 0.0 0.0 0.1 -0.1 0.0 -0.1
Recreation and Culture 2.4 2.4 2.0 1.9 1.9 1.9 2.7 2.7 2.6 1.8 1.0 1.0 0.8
Education 5.1 5.1 4.9 4.8 4.7 4.6 4.8 4.8 4.8 4.8 4.9 4.9 4.9
Restaurants and Miscellaneous Goods and Services 2.8 3.3 3.1 3.0 3.5 3.0 2.8 2.9 2.7 2.2 1.9 1.9 1.7
Source of basic data: Philippine Statistics Authority (PSA)*
* Republic Act No. 10625 signed on 12 September 2013 mandated the reorganization of the Philippine Statistical System (PSS) and the creation of the PSA which merged the major statistical agencies
engaged in primary data collection and compilation of secondary data, namely: National Statistics Office (NSO), National Statistical Coordination Board (NSCB), Bureau of Agricultural Statistics (BAS)
and Bureau of Labor and Employment Statistics (BLES).
2012 2013
2012 2013 2014
2014
2012 2013 2014
Quarter-on-Quarter Change (in percent)
Year-on-Year Change (in percent)
5 MONETARY INDICATORS 1
as of periods indicated; in billion pesos
2015
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 r
Q1 r
A. Liquidity
1. M4 (2 + 7) 5,621.1 5,814.4 5,756.7 6,252.7 6,204.4 6,836.0 7,323.2 8,054.2 8,215.0 8,351.9 8,523.1 9,050.8 9,006.6
2. M3: Broad Money Liabilities (3 + 6) 4,596.7 4,783.4 4,734.0 5,252.5 5,195.1 5,748.6 6,201.9 6,925.0 7,029.4 7,100.1 7,219.2 7,703.9 7,639.7
3. M2 (4 + 5) 4,368.2 4,535.6 4,543.6 5,013.3 4,973.7 5,523.3 5,988.2 6,693.6 6,795.8 6,864.3 6,949.3 7,396.3 7,336.5
4. M1: Currency Outside Depository Corporations and
Transferable Deposits (Narrow Money) 1,471.8 1,450.5 1,458.4 1,606.5 1,657.1 1,779.4 1,823.6 2,045.2 2,051.6 2,107.2 2,134.1 2,316.4 2,312.2
a. Currency Outside Depository Corporations
(Currency in Circulation) 476.9 468.0 469.7 558.7 541.5 525.5 521.1 640.3 586.2 580.3 588.0 713.7 658.8
b. Transferable Deposits (Demand Deposits) 994.9 982.5 988.8 1,047.8 1,115.6 1,253.9 1,302.5 1,404.8 1,465.4 1,526.9 1,546.1 1,602.6 1,653.5
5. Other Deposits Included in Broad Money 2,896.4 3,085.2 3,085.1 3,406.9 3,316.5 3,743.9 4,164.6 4,648.4 4,744.3 4,757.1 4,815.2 5,080.0 5,024.3
a. Savings Deposits 1,940.5 2,005.2 2,046.5 2,187.6 2,240.2 2,466.2 2,650.7 2,889.2 3,084.4 3,007.0 3,077.0 3,191.8 3,204.4
b. Time Deposits 956.0 1,080.0 1,038.6 1,219.3 1,076.3 1,277.7 1,513.8 1,759.2 1,659.8 1,750.1 1,738.1 1,888.2 1,819.8
6. Securities Other Than Shares Included in
Broad Money (Deposit Substitutes) 228.5 247.7 190.4 239.2 221.4 225.3 213.7 231.5 233.5 235.8 269.9 307.6 303.2
7. Transferable and Other Deposits in Foreign
Currency (FCDU Deposits - Residents) 1,024.5 1,031.0 1,022.7 1,000.1 1,009.3 1,087.4 1,121.3 1,129.2 1,185.6 1,251.7 1,303.9 1,346.8 1,366.9
8. Liabilities Excluded from Broad Money
(Other Liabilities) 2,501.1 2,469.5 2,692.0 2,409.5 2,645.3 2,200.4 1,923.2 1,509.5 1,693.2 1,708.6 1,791.6 1,754.4 1,856.5
B. Domestic Claims 4,878.5 5,083.0 5,135.1 5,414.0 5,598.6 5,643.4 5,677.7 5,988.7 6,332.0 6,473.9 6,605.5 7,053.0 6,987.6
1. Net Claims on Central Government 996.1 989.3 1,030.0 969.2 1,148.8 1,015.0 913.1 950.8 1,188.5 1,110.2 1,033.6 1,119.1 1,089.8
Claims on Central Government 1,467.8 1,430.2 1,426.0 1,559.4 1,567.0 1,536.2 1,574.5 1,638.8 1,735.0 1,733.2 1,738.6 1,862.7 1,855.3
Less: Liabilities to Central Government 471.8 440.9 396.0 590.2 418.2 521.2 661.4 688.0 546.5 623.1 705.0 743.7 765.5
2. Claims on Other Sectors 3,882.4 4,093.7 4,105.1 4,444.8 4,449.8 4,628.4 4,764.7 5,037.8 5,143.4 5,363.7 5,571.9 5,933.9 5,897.7
Claims on Other Financial Corporations 434.9 500.4 489.5 540.3 551.2 555.6 563.3 559.1 559.5 574.6 613.6 630.3 630.2
Claims on State and Local Government 71.5 70.3 70.9 71.0 72.5 72.4 73.0 74.7 73.3 71.9 70.5 71.5 70.4
Claims on Public Nonfinancial Corporations 277.6 305.2 284.4 280.3 281.7 278.8 273.1 266.4 265.1 271.2 268.0 269.3 272.0
Claims on Private Sector 3,098.4 3,217.8 3,260.3 3,553.1 3,544.6 3,721.7 3,855.2 4,137.7 4,245.5 4,446.0 4,619.8 4,962.9 4,925.2
C. Net Foreign Assets 3,243.7 3,201.0 3,313.7 3,248.2 3,251.0 3,393.0 3,568.7 3,575.0 3,576.3 3,586.6 3,709.1 3,752.1 3,875.6
1. Bangko Sentral ng Pilipinas 3,196.9 3,154.1 3,359.5 3,382.3 3,390.0 3,467.8 3,586.9 3,643.8 3,520.0 3,476.6 3,524.1 3,514.4 3,556.7
Claims on Non-Residents 3,272.2 3,226.5 3,431.0 3,452.0 3,458.7 3,540.2 3,661.7 3,719.8 3,597.3 3,551.7 3,599.6 3,587.4 3,627.4
Less: Liabilities to Non-Residents 75.3 72.5 71.5 69.7 68.7 72.4 74.8 76.0 77.3 75.1 75.4 73.0 70.7
2. Other Depository Corporations 46.8 46.9 -45.8 -134.1 -139.0 -74.7 -18.2 -68.8 56.3 110.0 185.0 237.7 318.9
Claims on Non-Residents 623.7 634.0 621.1 584.1 571.3 615.4 665.7 696.0 810.2 828.5 864.0 1,028.7 964.1
Less: Liabilities to Non-Residents 576.9 587.1 667.0 718.2 710.3 690.1 683.9 764.8 753.9 718.5 679.0 790.9 645.3
Note: Details may not add up due to rounding.1 Based on the Standardized Report Forms (SRFs), a unified framework for reporting monetary and financial statistics to the International Monetary Fund (IMF).
r Revised
Source: Bangko Sentral ng Pilipinas (BSP)
2012 2013 2014
6 SELECTED DOMESTIC INTEREST RATES
for periods indicated; in percent per annum
2015
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Interbank Call Loans 4.3473 4.1610 3.9465 3.6832 3.0555 2.2794 2.0235 2.0155 2.0147 2.0618 2.3356 2.5384 2.5266
Savings Deposits 1.5180 1.2940 1.2910 1.2640 1.1130 0.8550 0.7330 0.6590 0.5370 0.6270 0.6460 0.7030 0.7170
Time Deposits (All Maturities) 2.7420 2.8370 2.7740 2.9340 2.3730 1.4430 1.1210 1.0850 0.9740 0.9870 1.0480 1.3470 1.3760
Manila Reference Rates (All Maturities) 1
5.0625 4.9375 4.5625 3.4375 3.0000 2.0000 1.5625 1.5000 1.2500 1.3125 1.3750 N.T. N.T.
Lending Rates
7.9840 8.0219 7.8091 7.5378 7.1142 6.9750 6.9732 6.6567 6.7287 6.8083 6.8860 6.7818 6.8698
5.6636 5.7576 5.5490 5.2894 4.8584 4.6800 4.5337 4.3396 4.3688 4.3417 4.3861 4.4397 4.5031
6.0510 5.7040 5.4840 5.4550 5.8420 5.7800 5.7880 5.6520 5.5000 5.4780 5.5350 5.5820 5.4280
Bangko Sentral Rates
6.5000 N.T. 5.7500 N.T. N.T. N.T. 5.5000 N.T. N.T. N.T. N.T. N.T. N.T.
N.T. N.T. N.T. N.T. N.T. N.T. N.T. N.T. N.T. N.T. N.T. N.T. N.T.
4.2206 4.0000 3.8192 3.5000 3.5000 3.5000 3.5000 3.5000 3.5000 3.5000 3.7500 4.0000 4.0000
N.T. 4.0696 3.9512 3.6786 3.5847 3.5000 3.5000 3.5000 3.5000 3.5000 3.7500 4.0000 4.0000
4.1997 4.0000 3.8307 3.5757 3.5000 3.5000 3.5000 3.5245 3.5608 3.5460 3.7390 4.0515 4.0810
Rate on Government Securities
Treasury Bills, All Maturities 2.2200 2.4400 1.9870 0.7160 0.4740 0.6030 0.9280 0.1210 1.2880 1.5000 1.5000 1.5720 1.6910
1.8840 2.3340 1.4580 0.3450 0.0590 0.3860 0.6680 0.0010 1.0650 1.2740 1.2580 1.2860 1.4690
2.2080 2.3080 1.8250 0.6790 0.3000 0.5480 0.8970 0.0460 1.4000 1.5890 1.5820 1.7000 1.7290
2.6110 2.5310 2.2280 0.8270 0.7000 0.7550 1.0490 0.2270 1.5400 1.8630 1.8090 1.8250 1.9480
Government Securities in the Secondary Market 4
3 months 2.5212 2.3812 0.8038 0.4865 0.4021 1.9375 0.7313 0.4917 1.6917 1.3229 1.7104 2.5409 2.2714
6 months 2.5327 2.4885 1.2042 0.7885 0.4677 1.9854 1.0687 0.6000 2.0367 1.4938 1.9479 2.6432 2.5795
1 year 3.1665 2.6419 1.6885 0.9885 0.8729 2.1938 1.5646 0.9333 2.3125 1.8917 2.1729 2.6955 2.6886
2 years 3.3462 3.1385 2.7250 3.0577 2.5729 3.2271 2.8250 2.5208 2.7563 2.8542 2.9813 3.0568 3.1959
3 years 3.8038 3.9135 3.9077 3.8258 2.8625 3.3479 2.9875 2.9187 3.1650 2.8917 3.3833 3.4500 3.4136
4 years 4.7596 4.6462 4.4692 3.9865 2.9792 3.7229 3.4354 3.4521 3.3917 3.1750 3.5083 3.5705 3.5864
5 years 4.8250 5.1058 4.7096 4.1058 3.0708 3.7312 3.4750 3.7625 3.7479 3.9812 4.2146 3.6795 3.8273
7 years 5.1462 5.1673 4.8462 4.1385 3.2937 4.0917 3.7208 3.6850 3.8615 4.0292 4.1229 4.1475 3.8932
10 years 5.7962 5.9192 4.8962 4.4000 3.5292 4.2771 3.8437 3.8038 4.4562 4.1667 4.3475 4.3705 4.0614
20 years 6.0072 6.0227 5.8487 5.9692 3.8146 4.3042 4.2896 5.1875 5.3938 5.3750 5.3125 5.1727 4.9850
25 years 6.4469 6.3827 6.0454 5.8962 4.1396 5.4487 5.5792 5.6458 5.6354 5.4329 5.3750 4.9500 4.7659
2015
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Interbank Call Loans 1.2473 1.2610 0.3465 0.6832 -0.1445 -0.4206 -0.3765 -1.3845 -2.0853 -2.3382 -2.3644 -1.0616 0.1266
Savings Deposits -1.5820 -1.6060 -2.3090 -1.7360 -2.0870 -1.8450 -1.6670 -2.7410 -3.5630 -3.7730 -4.0540 -2.8970 -1.6830
Time Deposits (All Maturities) -0.3580 -0.0630 -0.8260 -0.0660 -0.8270 -1.2570 -1.2790 -2.3150 -3.1260 -3.4130 -3.6520 -2.2530 -1.0240
Manila Reference Rates (All Maturities) 1
1.9625 2.0375 0.9625 0.4375 -0.2000 -0.7000 -0.8375 -1.9000 -2.8500 -3.0875 -3.3250 N.T. N.T.
Lending Rates
4.8840 5.1219 4.2091 4.5378 3.9142 4.2750 4.5732 3.2567 2.6287 2.4083 2.1860 3.1818 4.4698
2.5636 2.8576 1.9490 2.2894 1.6584 1.9800 2.1337 0.9396 0.2688 -0.0583 -0.3139 0.8397 2.1031
2.9510 2.8040 1.8840 2.4550 2.6420 3.0800 3.3880 2.2520 1.4000 1.0780 0.8350 1.9820 3.0280
Bangko Sentral Rates
3.4000 N.T. 2.1500 N.T. N.T. N.T. 3.1000 N.T. N.T. N.T. N.T. N.T. N.T.
N.T. N.T. N.T. N.T. N.T. N.T. N.T. N.T. N.T. N.T. N.T. N.T. N.T.
1.1206 1.1000 0.2192 0.5000 0.3000 0.8000 1.1000 0.1000 -0.6000 -0.9000 -0.9500 0.4000 1.6000
N.T. 1.1696 0.3512 0.6786 0.3847 0.8000 1.1000 0.1000 -0.6000 -0.9000 -0.9500 0.4000 1.6000
1.0997 1.1000 0.2307 0.5757 0.3000 0.8000 1.1000 0.1245 -0.5392 -0.8540 -0.9610 0.4515 1.6810
Rate on Government Securities
Treasury Bills, All Maturities -0.8800 -0.4600 -1.6130 -2.2840 -2.7260 -2.0970 -1.4720 -3.2790 -2.8120 -2.9000 -3.2000 -2.0280 -0.7090
-1.2160 -0.5660 -2.1420 -2.6550 -3.1410 -2.3140 -1.7320 -3.3990 -3.0350 -3.1260 -3.4420 -2.3140 -0.9310
-0.8920 -0.5920 -1.7750 -2.3210 -2.9000 -2.1520 -1.5030 -3.3540 -2.7000 -2.8110 -3.1180 -1.9000 -0.6710
-0.4890 -0.3690 -1.3720 -2.1730 -2.5000 -1.9450 -1.3510 -3.1730 -2.5600 -2.5370 -2.8910 -1.7750 -0.4520
Government Securities in the Secondary Market 4
3 months -0.0788 -0.5188 -2.8962 -2.5135 -2.7979 -0.7625 -1.9687 -3.6083 -2.2083 -3.0771 -2.6896 -0.1591 -0.1286
6 months -0.0673 -0.4115 -2.4958 -2.2115 -2.7323 -0.7146 -1.6313 -3.5000 -1.8633 -2.9062 -2.4521 -0.0568 0.1795
1 year 0.5665 -0.2581 -2.0115 -2.0115 -2.3271 -0.5062 -1.1354 -3.1667 -1.5875 -2.5083 -2.2271 -0.0045 0.2886
2 years 0.7462 0.2385 -0.9750 0.0577 -0.6271 0.5271 0.1250 -1.5792 -1.1437 -1.5458 -1.4187 0.3568 0.7959
3 years 1.2038 1.0135 0.2077 0.8258 -0.3375 0.6479 0.2875 -1.1813 -0.7350 -1.5083 -1.0167 0.7500 1.0136
4 years 2.1596 1.7462 0.7692 0.9865 -0.2208 1.0229 0.7354 -0.6479 -0.5083 -1.2250 -0.8917 0.8705 1.1864
5 years 2.2250 2.2058 1.0096 1.1058 -0.1292 1.0312 0.7750 -0.3375 -0.1521 -0.4188 -0.1854 0.9795 1.4273
7 years 2.5462 2.2673 1.1462 1.1385 0.0937 1.3917 1.0208 -0.4150 -0.0385 -0.3708 -0.2771 1.4475 1.4932
10 years 3.1962 3.0192 1.1962 1.4000 0.3292 1.5771 1.1437 -0.2962 0.5562 -0.2333 -0.0525 1.6705 1.6614
20 years 3.4072 3.1227 2.1487 2.9692 0.6146 1.6042 1.5896 1.0875 1.4938 0.9750 0.9125 2.4727 2.5850
25 years 3.8469 3.4827 2.3454 2.8962 0.9396 2.7487 2.8792 1.5458 1.7354 1.0329 0.9750 2.2500 2.3659
1 Refers to the New Manila Reference Rates (MRR) based on combined transactions on time deposits and promissory notes of reporting commercial banks. Per BSP Circular No. 846, the generation and publication of MRR rates will be
discontinued effective 17 September 2014. September data covers bank reports prior to the said date.2 Refers to the weighted average interest rate of reporting commercial banks' interest incomes on their outstanding peso-denominated loans
3 Weighted average of transacted rates
4 End-of-period
5 Nominal interest rate less inflation rate
N.T. - No transactions
Source: Bangko Sentral ng Pilipinas
RR/P (Term) 3
Rediscounting
91-Days
182-Days
364-Days
High
Low
All Maturities 2
R/P (Overnight) 3
R/P (Term) 3
2012 2013 2014
RR/P (Term) 3
Rediscounting
REAL INTEREST RATES 5
RR/P (Overnight) 3
182-Days
364-Days
91-Days
RR/P (Overnight) 3
High
All Maturities 2
R/P (Overnight) 3
R/P (Term) 3
2012 2013 2014
Low
NOMINAL INTEREST RATES
7 NUMBER OF FINANCIAL INSTITUTIONS 1
as of period indicated
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
TOTAL 26,512 26,784 26,742 27,189 27,329 27,503 27,759 28,047 28,065 28,094 28,128 28,243
Head Offices 7,433 7,421 7,268 7,238 7,205 7,112 7,053 7,012 6,943 6,888 6,840 6,747
Branches/Agencies 19,079 19,363 19,474 19,951 20,124 20,391 20,706 21,035 21,122 21,206 21,288 21,496
A. BANKS 9,186 9,207 9,301 9,410 9,477 9,543 9,720 9,935 10,020 10,120 10,207 10,361
Head Offices 723 712 705 696 687 683 676 673 667 664 652 648
Branches/Agencies 8,463 8,495 8,596 8,714 8,790 8,860 9,044 9,262 9,353 9,456 9,555 9,713
1. Universal and Commercial Banks 4,904 4,965 5,028 5,145 5,182 5,234 5,330 5,461 5,514 5,583 5,738 5,833
Head Offices 38 37 37 37 36 36 36 36 36 36 36 36
Branches/Agencies 4,866 4,928 4,991 5,108 5,146 5,198 5,294 5,425 5,478 5,547 5,702 5,797
2. Thrift Banks 1,545 1,522 1,545 1,619 1,641 1,662 1,773 1,828 1,856 1,878 1,873 1,920
Head Offices 71 69 69 70 70 70 71 71 70 70 69 69
Branches/Agencies 1,474 1,453 1,476 1,549 1,571 1,592 1,702 1,757 1,786 1,808 1,804 1,851
a. Savings and Mortgage Banks 1,007 1,003 1,020 1,052 1,072 1,085 1,150 1,199 1,219 1,242 1,248 1,280
Head Offices 28 28 28 28 28 28 28 28 28 28 28 28
Branches/Agencies 979 975 992 1,024 1,044 1,057 1,122 1,171 1,191 1,214 1,220 1,252
b. Private Development Banks 367 341 346 385 384 387 429 432 437 432 440 444
Head Offices 19 18 18 19 19 19 20 19 19 19 19 19
Branches/Agencies 348 323 328 366 365 368 409 413 418 413 421 425
c. Stock Savings and Loan Associations 144 150 151 154 157 162 166 168 171 175 154 165
Head Offices 21 20 20 20 20 20 20 20 19 19 18 18
Branches/Agencies 123 130 131 134 137 142 146 148 152 156 136 147
d. Microfinance Banks 27 28 28 28 28 28 28 29 29 29 31 31
Head Offices 3 3 3 3 3 3 3 4 4 4 4 4
Branches/Agencies 24 25 25 25 25 25 25 25 25 25 27 27
3. Rural Banks 2,737 2,720 2,728 2,646 2,654 2,647 2,617 2,646 2,650 2,659 2,596 2,608
Head Offices 614 606 599 589 581 577 569 566 561 558 547 543
Branches/Agencies 2,123 2,114 2,129 2,057 2,073 2,070 2,048 2,080 2,089 2,101 2,049 2,065
B. NON -BANKING FINANCIAL INSTITUTIONS 17,326 17,577 17,441 17,779 17,852 17,960 18,039 18,112 18,045 17,974 17,921 17,882
Head Offices 6,710 6,709 6,563 6,542 6,518 6,429 6,377 6,339 6,276 6,224 6,188 6,099
Branches/Agencies 10,616 10,868 10,878 11,237 11,334 11,531 11,662 11,773 11,769 11,750 11,733 11,783
1. Investment Houses 27 27 27 27 26 26 26 26 26 25 25 25
Head Offices 17 17 17 17 16 16 16 16 16 15 15 15
Branches/Agencies 10 10 10 10 10 10 10 10 10 10 10 10
2. Finance Companies 46 85 85 87 87 87 87 87 88 88 88 88
Head Offices 20 20 20 20 20 20 20 20 20 20 20 20
Branches/Agencies 26 65 65 67 67 67 67 67 68 68 68 68
3. Investment Companies 4 4 4 3 3 3 3 3 3 3 2 2
Head Offices 4 4 4 3 3 3 3 3 3 3 2 2
Branches/Agencies 0 0 0 0 0 0 0 0 0 0 0 0
4. Securities Dealers/Brokers 14 13 13 13 13 13 13 13 13 13 13 13
Head Offices 14 13 13 13 13 13 13 13 13 13 13 13
Branches/Agencies 0 0 0 0 0 0 0 0 0 0 0 0
5. Pawnshops 16,936 17,128 16,992 17,335 17,408 17,514 17,579 17,652 17,584 17,513 17,461 17,422
Head Offices 6,464 6,463 6,317 6,301 6,279 6,188 6,123 6,085 6,022 5,971 5,936 5,847
Branches/Agencies 10,472 10,665 10,675 11,034 11,129 11,326 11,456 11,567 11,562 11,542 11,525 11,575
6. Lending Investors 1 1 1 1 1 1 1 1 1 1 1 1
Head Offices 1 1 1 1 1 1 1 1 1 1 1 1
Branches/Agencies 0 0 0 0 0 0 0 0 0 0 0 0
7. Non-Stock Savings and Loan Associations 174 195 195 195 196 198 199 198 198 199 199 199
Head Offices 70 71 71 71 70 72 72 71 71 71 71 71
Branches/Agencies 104 124 124 124 126 126 127 127 127 128 128 128
8. Private Insurance Companies 2
116 116 116 110 110 110 110 110 110 110 110 110
Head Offices 112 112 112 108 108 108 108 108 108 108 108 108
Branches/Agencies 4 4 4 2 2 2 2 2 2 2 2 2
9. Government Non-Banks 4 4 4 4 4 4 4 4 4 4 4 4
Head Offices 4 4 4 4 4 4 4 4 4 4 4 4
Branches/Agencies 0 0 0 0 0 0 0 0 0 0 0 0
10. Venture Capital Coporations 0 0 0 0 0 0 0 0 0 0 0 0
Head Offices 0 0 0 0 0 0 0 0 0 0 0 0
Branches/Agencies 0 0 0 0 0 0 0 0 0 0 0 0
11. Credit Card Companies 3 3 3 3 3 3 3 3 3 3 3 3
Head Offices 3 3 3 3 3 3 3 3 3 3 3 3
Branches/Agencies 0 0 0 0 0 0 0 0 0 0 0 0
12. Other Non-Bank with QBF 1 1 1 1 1 1 1 1 1 1 1 1
Head Offices 1 1 1 1 1 1 1 1 1 1 1 1
Branches/Agencies 0 0 0 0 0 0 0 0 0 0 0 0
13. Electronic Money Issuer 0 0 0 0 0 0 3 4 4 4 4 4
Head Offices 0 0 0 0 0 0 3 4 4 4 4 4
Branches/Agencies 0 0 0 0 0 0 0 0 0 0 0 0
14. Remittance Agent 0 0 0 0 0 0 1 1 1 1 1 1
Head Offices 0 0 0 0 0 0 1 1 1 1 1 1
Branches/Agencies 0 0 0 0 0 0 0 0 0 0 0 0
15. Credit Granting Entities 0 0 0 0 0 0 9 9 9 9 9 9
Head Offices 0 0 0 0 0 0 9 9 9 9 9 9
Branches/Agencies 0 0 0 0 0 0 0 0 0 0 0 0
1 Refers to the number of financial establishments which includes the head offices and branches; excludes the Bangko Sentral ng Pilipinas.
Starting Q4 2009, data include other banking offices per Circular 505 and 624 dated 22 December 2005 and 13 October 2008, respectively. Other banking offices refer to any office or place of business in the Philippines
other than the head office, branch or extension office, which primarily engages in banking activities other than the acceptance of deposits and/or servicing of withdrawals thru tellers and other authorized personnel.2 Covers only the head offices and their foreign branches.
Source: Bangko Sentral ng Pilipinas
2012 2013 2014
8 TOTAL RESOURCES OF THE FINANCIAL SYSTEM 1
as of periods indicated; in billion pesos
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
TOTAL 9,530.3 9,805.7 9,970.7 10,622.4 10,757.2 11,291.2 11,829.0 12,833.6 13,014.0 13,331.0 13,472.6 14,267.7 14,108.2p
Banks 7,464.3 7,671.4 7,866.9 8,357.9 8,419.4 8,931.3 9,463.1 10,311.8 10,446.9 10,603.6 10,735.3 11,533.0 11,373.5p
Universal and Commercial Banks 2
6,668.0 6,877.6 7,054.3 7,486.6 7,547.6 7,995.5 8,505.4 9,300.4 9,412.5 9,545.6 9,658.0 10,398.4 10,238.9
Thrift Banks 608.6 606.2 622.4 681.5 679.3 739.8 764.6 809.1 825.0 851.1 866.6 916.2 916.2a
Rural Banks 2
187.8 187.6 190.1 189.7 192.6 196.0 193.1 202.3 209.4 206.9 210.7 218.4 218.4a
Non-Banks 3
2,065.9 2,134.3 2,103.9 2,264.4 2,337.8 2,359.9 2,365.9 2,521.8 2,567.1 2,727.5 2,737.3 2,734.7 2,734.7a
Notes: Details may not add up to total due to rounding.1 Excludes the Bangko Sentral ng Pilipinas; amount includes allowance for probable losses
2 Data on rural banks are based on Consolidated Statement of Condition (CSOC) up to March 2010. Data from April 2010 onwards are based on Financial Reporting Package (FRP).
3 Data on non-banks are based on CSOC; include investment houses, finance companies, investment companies, securities dealers/brokers, pawnshops, lending investors, non-stock savings and loan associations,
credit card companies (which are under the BSP's supervision), and private and government insurance companies (i.e., SSS and GSIS).p preliminary
a As of end-December 2014
Source: Bangko Sentral ng Pilipinas (BSP)
201520142012 2013
9 RATIOS OF NON-PERFORMING LOANS (NPL) AND LOAN LOSS PROVISIONS (LLP) TO TOTAL LOANS OF THE BANKING SYTEM 1
as of periods indicated; in percent
Total
Universal
Banks and
Commercial
Banks
Thrift
Banks
Rural
BanksTotal
Universal
Banks and
Commercial
Banks
Thrift
Banks
Rural
BanksTotal
Universal
Banks and
Commercial
Banks
Thrift
Banks
Rural
BanksTotal
Universal
Banks and
Commercial
Banks
Thrift
Banks
Rural
Banks
(1)/(13) (2)/(14) (3)/(15) (4)/(16) (5)/(13) (6)/(14) (7)/(15) (8)/(16) (9)/(13) (10)/(14) (11)/(15) (12)/(16) (17)/(13) (18)/(14) (19)/(15) (20)/(16)
3.718 2.986 7.306 10.105 3.769 3.594 4.693 5.096
3.101 2.446 6.183 10.190 3.214 3.087 3.648 5.107
3.112 2.460 6.228 9.968 3.189 3.043 3.736 5.175
2.848 2.233 5.721 10.138 2.952 2.821 3.374 5.106
3.936 3.331 6.481 11.266 1.020 0.593 2.869 6.037 4.056 3.914 4.514 6.215
3.569 3.013 5.626 11.508 0.717 0.336 2.201 5.886 3.897 3.756 4.219 6.591
3.616 3.003 6.292 11.492 0.794 0.384 2.762 5.482 3.920 3.734 4.521 6.989
3.381 2.756 5.905 12.327 0.720 0.310 2.720 5.374 3.707 3.519 4.027 7.948
3.423 2.741 6.131 13.323 0.872 0.448 2.787 6.235 3.740 3.517 4.317 8.048
3.319 2.683 5.938 12.358 0.787 0.387 2.628 5.764 3.698 3.491 4.294 7.573
3.215 2.566 5.888 12.935 0.825 0.421 2.667 6.207 3.553 3.349 4.116 7.682
2.768 2.126 5.456 13.132 0.584 0.189 2.419 6.260 3.285 3.064 3.957 7.836
2.761 2.155 4.939 13.137 0.636 0.230 2.400 6.382 3.214 3.044 3.427 7.696
2.684 2.100 4.826 13.445 0.658 0.276 2.297 6.694 3.122 2.954 3.391 7.706
2.561 2.044 4.524 12.240 0.627 0.300 2.010 6.134 3.002 2.842 3.365 7.047
2.312 1.818 4.405 11.848 0.596 0.299 1.970 5.854 2.770 2.590 3.380 6.908
2.461p
1.950 4.541 11.848a
0.668p
0.362 2.016 5.854a
2.871p
2.695 3.404 6.908a
Note: Details may not add up to total due to rounding.1
Data include banks under liquidation, foreign office transactions and interbank loans2 Starting September 2002, for supervisory purposes, computation of NPL was based on BSP Circular No.351 which defines total loans as gross of allowance for probable losses and interbank loans less loans
classified as loss. This has been discontinued in 2013. For comparability purposes, 2012 was revised based on the new definition (BSP Circular No. 772).3 Starting January 2013, NPL data are based on BSP Circular No. 772. Gross NPL represents the actual level of NPL without any adjustment for loans treated as "loss" and fully provisioned.
As a complementary measure to computing NPL, banks shall likewise compute their net NPLs, which shall refer to gross NPLs less specific allowance for credit losses on the total loan portfolio.
Under BSP Circular No. 772, there are no available data for gross NPLs and net NPLs earlier than 2012.p preliminary
a As of December 2014
Source: Bangko Sentral ng Pilipinas
Jun
Jun
Sep
2011
Mar
NPL/TOTAL LOANS 2
GROSS NPL/TOTAL LOANS 3
NET NPL/TOTAL LOANS 3 LLP/TOTAL LOANS
2012
Jun
Sep
Dec
Mar
Dec
2013
Mar
Jun
Mar
Dec
2014
Sep
Mar
Dec
2015
Sep
9 NON-PERFORMING LOANS (NPL), TOTAL LOANS AND LOAN LOSS PROVISIONS (LLP) OF THE BANKING SYSTEM 1
as of periods indicated; in billion pesos
Total
Universal
Banks and
Commercial
Banks
Thrift
Banks
Rural
BanksTotal
Universal
Banks and
Commercial
Banks
Thrift
Banks
Rural
BanksTotal
Universal
Banks and
Commercial
Banks
Thrift
Banks
Rural
BanksTotal
Universal
Banks and
Commercial
Banks
Thrift
Banks
Rural
BanksTotal
Universal
Banks and
Commercial
Banks
Thrift
Banks
Rural
Banks
(1) = (2) + (3)
+ (4)(2) (3) (4)
(5) = (6) +
(7) + (8)(6) (7) (8)
(9) = (10) +
(11) + (12)(10) (11) (12)
(13) = (14) +
(15) + (16)(14) (15) (16)
(17) = (18) +
(19) + (20)(18) (19) (20)
120.159 82.410 25.911 11.838 3,231.753 2,759.938 354.660 117.155 121.812 99.197 16.645 5.970
109.087 74.143 22.746 12.198 3,518.199 3,030.631 367.867 119.701 113.081 93.548 13.420 6.113
109.152 74.326 22.699 12.127 3,507.179 3,021.051 364.469 121.659 111.858 91.944 13.618 6.296
106.154 71.938 21.953 12.263 3,726.799 3,222.105 383.731 120.963 110.025 90.903 12.946 6.176
146.384 106.354 26.090 13.940 37.938 18.918 11.550 7.470 3,718.776 3,192.496 402.540 123.740 150.828 124.968 18.170 7.690
140.828 102.098 24.360 14.370 28.273 11.393 9.530 7.350 3,945.951 3,388.091 432.990 124.870 153.769 127.269 18.270 8.230
144.050 103.420 25.830 14.800 31.624 13.224 11.340 7.060 3,983.461 3,444.161 410.520 128.780 156.158 128.598 18.560 9.000
142.990 100.610 26.530 15.850 30.440 11.310 12.220 6.910 4,228.600 3,650.760 449.260 128.580 156.770 128.460 18.090 10.220
143.537 99.357 26.930 17.250 36.558 16.245 12.240 8.073 4,193.756 3,625.043 439.240 129.473 156.867 127.487 18.960 10.420
144.662 100.912 27.840 15.910 34.309 14.569 12.320 7.420 4,358.461 3,760.891 468.830 128.740 161.171 131.291 20.130 9.750
145.933 100.638 28.895 16.400 37.455 16.497 13.088 7.870 4,539.580 3,922.085 490.705 126.790 161.277 131.338 20.199 9.740
135.544 90.509 27.729 17.306 28.591 8.050 12.291 8.250 4,896.950 4,256.963 508.199 131.788 160.874 130.440 20.107 10.327
138.494 93.323 27.057 18.114 31.885 9.939 13.146 8.800 5,015.414 4,329.734 547.791 137.889 161.173 131.790 18.771 10.612
139.830 94.798 27.165 17.867 34.263 12.437 12.931 8.895 5,209.026 4,513.288 562.850 132.888 162.645 133.317 19.088 10.240
138.706 96.181 26.049 16.476 33.958 14.129 11.572 8.257 5,415.045 4,704.656 575.778 134.611 162.569 133.708 19.375 9.486
134.830 93.055 25.373 16.402 34.739 15.289 11.346 8.104 5,832.377 5,117.884 576.057 138.436 161.573 132.542 19.468 9.563
141.060p
97.365 27.293 16.402a
38.313p
18.093 12.116 8.104a
5,731.331p
4,991.914 600.981 138.436a
164.567p
134.544 20.460 9.563a
Note: Details may not add up to total due to rounding.1
Data include banks under liquidation, foreign office transactions and interbank loans2 Starting September 2002, for supervisory purposes, computation of NPL was based on BSP Circular No.351 which defines total loans as gross of allowance for probable losses and interbank loans less loans
classified as loss. This has been discontinued in 2013. For comparability purposes, 2012 was revised based on the new definition (BSP Circular No. 772).3 Starting January 2013, NPL data are based on BSP Circular No. 772. Gross NPL represents the actual level of NPL without any adjustment for loans treated as "loss" and fully provisioned.
As a complementary measure to computing NPL, banks shall likewise compute their net NPLs, which shall refer to gross NPLs less specific allowance for credit losses on the total loan portfolio.
Under BSP Circular No. 772, there are no available data for gross NPLs and net NPLs earlier than 2012.p preliminary
a As of December 2014
Source: Bangko Sentral ng Pilipinas
Dec
2015
Mar
Mar
Jun
Sep
Sep
Dec
2014
2013
Mar
Jun
Jun
Sep
Dec
Dec
2012
Mar
Mar
Jun
Sep
2011
NON-PERFORMING LOANS 2
GROSS NON-PERFORMING LOANS 3
NET NON-PERFORMING LOANS 3 TOTAL LOANS LOAN LOSS PROVISIONS (LLP)
10 STOCK MARKET TRANSACTIONS
volume in million shares; value in million pesos
2015
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
VOLUME 402,135 152,893 116,967 371,124 165,036 170,243 106,453 73,403 113,135 122,113 155,537 424,409 150,587
Financials 1,619 1,153 991 1,435 1,816 1,374 986 3,439 992 1,341 1,558 1,090 978
Industrial 31,503 13,358 16,362 81,440 18,622 35,931 15,350 10,863 12,328 13,115 13,644 25,346 10,913
Holding Firms 21,751 7,081 9,092 143,646 33,659 36,290 5,254 5,250 5,728 6,984 12,527 12,142 10,844
Property 25,507 18,145 14,137 18,676 22,018 16,991 19,350 10,129 12,053 22,136 20,366 15,629 12,138
Services 14,404 10,480 15,810 44,605 23,394 21,728 10,167 13,676 7,058 12,923 17,377 32,885 21,263
Mining and Oil 307,351 102,675 60,575 81,321 65,527 57,929 55,346 30,043 74,975 64,492 89,992 336,889 94,056
SME (in thousand shares) 123 21 242 1,296 322 232 285 302 317 1,120,339 71,577 421,612 393,244
ETF 1
(in thousand shares) 1,196 426 668 791 4,748 1,893
VALUE 502,081 445,648 359,916 464,066 623,382 781,005 587,512 554,284 457,085 535,924 548,203 588,908 641,594
Financials 74,929 60,289 51,589 96,175 101,570 98,628 77,285 64,828 65,888 73,681 69,826 68,898 74,595
Industrial 114,995 132,721 69,894 101,502 125,879 228,624 144,382 185,203 104,206 110,557 94,254 119,148 145,948
Holding Firms 106,954 104,977 87,474 101,073 167,320 187,192 135,005 116,194 121,554 120,483 131,683 126,267 174,325
Property 58,562 52,983 65,675 66,955 108,596 100,356 139,774 60,423 67,867 105,044 79,090 108,390 103,447
Services 78,837 59,064 67,397 81,772 91,228 150,765 81,066 119,723 83,835 96,404 143,589 137,725 111,491
Mining and Oil 67,803 35,614 17,885 16,579 28,786 15,438 9,997 7,791 13,688 22,756 29,113 24,360 27,328
SME (in thousand pesos) 526 83 1,088 10,707 2,677 1,354 3,633 3,452 5,312 6,927,918 557,346 3,581,718 4,226,414
ETF 1
(in thousand pesos) 118,184 42,130 72,183 90,521 539,579 234,748
Composite Index (end-of-period) 5,107.73 5,246.41 5,346.10 5,812.73 6,847.47 6,465.28 6,191.80 5,889.83 6,428.71 6,844.31 7,283.07 7,230.57 7,940.49
Note: Details may not add up due to rounding.1 Starting 2 December 2013, trading of an Exchange Traded Fund (ETF) commenced. ETF is an open-end investment company that trades its shares in the stock exchange.
Source: Philippine Stock Exchange
2012 2013 2014
11 PHILIPPINES: BALANCE OF PAYMENTS
in million US dollars
Q1 Q2 Q3 Q4 Q1 Q1 2015 p
Current Account 1,495 3,088 3,366 4,701 3,305 121.1
Export 23,645 27,082 27,349 26,802 25,368 7.3
Import 22,150 23,994 23,983 22,101 22,063 -0.4
Goods, Services, and Primary Income -3,522 -2,410 -2,403 -1,570 -1,853 47.4
Export 18,453 21,442 21,398 20,348 20,028 8.5
Import 21,975 23,852 23,800 21,919 21,881 -0.4
Goods and Services -3,588 -2,630 -2,673 -2,086 -2,161 39.8
Export 16,276 19,193 19,080 18,046 17,707 8.8
Import 19,864 21,822 21,753 20,132 19,868 -
Goods -5,414 -3,104 -3,621 -3,711 -4,694 13.3
Credit: Exports 10,154 13,669 12,595 11,340 10,408 2.5
Debit: Imports 15,568 16,773 16,216 15,051 15,103 -3.0
Services 1,826 475 948 1,625 2,534 38.8
Credit: Exports 6,122 5,524 6,485 6,706 7,299 19.2
Debit: Imports 4,296 5,049 5,537 5,080 4,765 10.9
Primary Income 66 220 270 516 308 368.4
Credit: Receipts 2,177 2,249 2,317 2,303 2,321 6.6
Debit: Payments 2,111 2,029 2,047 1,787 2,013 -4.6
Secondary Income 5,017 5,498 5,769 6,271 5,159 2.8
Credit: Receipts 5,192 5,641 5,951 6,454 5,340 2.8
Debit: Payments 175 142 183 183 181 3.8
Capital Account 26 26 22 28 22 -12.9
Credit: Receipts 28 28 28 30 29 4.8
Debit: Payments 2 2 6 3 7 211.3
Financial Account 4,098 696 810 4,480 606 -85.2
Net Acquisition of Financial Assets 4,243 2,607 1,893 7,242 288 -93.2
Net Incurrence of Liabilities 145 1,911 1,083 2,762 -318 -318.5
Direct Investment -487 -543 842 977 395 181.2
Net Acquisition of Financial Assets 1,229 1,114 2,270 2,377 1,246 1.4
Net Incurrence of Liabilities 1,715 1,657 1,428 1,400 851 -50.4
Portfolio Investment 2,811 -649 -903 1,202 227 -91.9
Net Acquisition of Financial Assets 1,239 532 -245 930 1,559 25.8
Net Incurrence of Liabilities -1,572 1,181 659 -271 1,332 184.8
Financial Derivatives -19 -7 9 -31 -22 -16.0
Net Acquisition of Financial Assets -72 -50 -74 -81 -56 22.0
Net Incurrence of Liabilities -53 -44 -83 -50 -34 35.7
Other Investment 1,793 1,895 863 2,332 7 -99.6
Net Acquisition of Financial Assets 1,848 1,011 -59 4,016 -2,461 -233.2
Net Incurrence of Liabilities 55 -884 -921 1,684 -2,467 -4,597.7
Net Unclassified Items -1,897 -2,087 -1,866 325 -1,845 2.8
Overall BOP Position -4,475 330 712 574 877 119.6
Debit: Change in Reserve Assets -4,464 320 723 563 888 119.9
Credit: Change in Reserve Liabilities 11 -11 11 -11 11 -1.4
Use of Fund Credits 0 0 0 0 0 --
Short-term 11 -11 11 -11 11 -1.4
Details may not add up to total due to roundingp
preliminary
Technical Notes:
1. Balance of Payments Statistics are based on the IMF's Balance of Payments and International Investment Position Manual, 6th
edition.
2. Financial Account, including Reserve Assets, is calculated as sum of net acquisitions of financial assets less net incurrence of liabilities.
3. Balances in the current and capital accounts are derived by deducting debit entries from credit entries.
4. Balances in the financial account are derived by deducting net incurrence of liabilities from net acquisition of financial assets.
5. Negative values of Net Acquisition of Financial Assets indicate withdrawal/disposal of financial assets; negative values of Net Incurrence of
Liabilities indicate repayment of liabilities.
6. Overall BOP position is calculated as the change in the country's net international reserves (NIR), less non-economic trasactions (revaluation and
gold monetization/demonetization). Alternatively, it can be derived by adding the current and capital account balances less financial account plus
net unclassified items.
7. Net unclassified items is an offsetting account to the overstatement or understatement in either receipts or payments of the recorded BOP components
vis-à-vis the overall BOP position.
8. Data on deposit-taking corporations, except the central bank consist of transactions of commercial and thrift banks and offshore banking units (OBUs).
Growth
Rates (in %)
2014 2015
12 INTERNATIONAL RESERVES
as of periods indicated; in million US dollars
Mar Jun Sep Dec Mar
Gross International Reserves 79,645 80,733 79,557 79,541 80,459
Gold 8,006 8,285 7,570 7,484 7,437
SDRs 1,308 1,308 1,255 1,226 1,168
Foreign Investments 68,991 69,890 68,936 69,960 70,565
Foreign Exchange 746 639 1,207 300 850
Reserve Position in the Fund 595 612 590 571 439
Net International Reserves 79,632 80,731 79,544 79,539 80,446
Source: Bangko Sentral ng Pilipinas
2014 2015
13 EXCHANGE RATES OF THE PESO
period averages; pesos per unit of foreign currency
2012 Ave 42.2288 0.5299 54.3079 66.9249 43.7274 33.8041 5.4441 13.6818 1.3595 0.0045 1.4282 0.0375 6.6925 11.2607 11.4975
Q1 43.0458 0.5439 56.4446 67.6303 45.4161 34.0552 5.5473 14.0628 1.3891 0.0048 1.4495 0.0381 6.8224 11.4784 11.7199
Jan 43.6191 0.5670 56.2828 67.6569 45.3095 34.0705 5.6185 13.9823 1.3818 0.0048 1.4524 0.0381 6.9078 11.6315 11.8760
Feb 42.6608 0.5448 56.4222 67.4003 45.7292 34.0289 5.5017 14.1129 1.3882 0.0047 1.4439 0.0380 6.7708 11.3759 11.6151
Mar 42.8574 0.5199 56.6288 67.8338 45.2096 34.0664 5.5216 14.0931 1.3975 0.0047 1.4523 0.0381 6.7884 11.4280 11.6687
Q2 42.7759 0.5342 54.9295 67.7274 43.1939 33.8580 5.5113 13.7539 1.3688 0.0046 1.4444 0.0371 6.7562 11.4065 11.6464
Apr 42.6998 0.5253 56.2914 68.4145 44.2003 34.1571 5.5012 13.9585 1.3841 0.0047 1.4492 0.0376 6.7706 11.3863 11.6256
May 42.8515 0.5375 54.8780 68.2662 42.7908 33.9592 5.5199 13.8470 1.3704 0.0046 1.4544 0.0370 6.7763 11.4266 11.6670
Jun 42.7765 0.5397 53.6192 66.5015 42.5907 33.4579 5.5130 13.4563 1.3518 0.0046 1.4297 0.0367 6.7218 11.4065 11.6467
Q3 41.8999 0.5331 52.4566 66.2201 43.5134 33.6078 5.4029 13.4270 1.3367 0.0044 1.4052 0.0370 6.5967 11.1732 11.4080
Jul 41.9054 0.5302 51.5881 65.3765 43.0925 33.2304 5.4033 13.2341 1.3250 0.0044 1.3981 0.0367 6.5779 11.1746 11.4095
Aug 42.0452 0.5349 52.0961 66.0660 44.0751 33.7009 5.4213 13.4950 1.3384 0.0044 1.4040 0.0372 6.6110 11.2120 11.4477
Sep 41.7490 0.5341 53.6856 67.2180 43.3724 33.8922 5.3843 13.5519 1.3467 0.0044 1.4135 0.0371 6.6012 11.1330 11.3668
Q4 41.1937 0.5085 53.4008 66.1217 42.7863 33.6952 5.3150 13.4833 1.3434 0.0043 1.4138 0.0378 6.5946 10.9847 11.2157
Oct 41.4521 0.5258 53.7545 66.6237 42.6505 33.8484 5.3477 13.5689 1.3515 0.0043 1.4173 0.0374 6.6094 11.0539 11.2860
Nov 41.1222 0.5082 52.7036 65.5939 42.7514 33.6142 5.3060 13.4464 1.3399 0.0043 1.4123 0.0378 6.5966 10.9656 11.1962
Dec 41.0067 0.4914 53.7443 66.1474 42.9570 33.6230 5.2914 13.4347 1.3388 0.0043 1.4117 0.0381 6.5778 10.9348 11.1648
2013 Ave 42.4462 0.4356 56.3942 66.4139 41.0195 33.9347 5.4725 13.4839 1.3832 0.0041 1.4305 0.0388 6.9048 11.3184 11.5567
Q1 40.7048 0.4415 53.7888 63.1776 42.2374 32.9032 5.2487 13.2149 1.3661 0.0042 1.3813 0.0376 6.5401 10.8542 11.0825
Jan 40.7295 0.4580 54.1270 65.0893 42.7556 33.1823 5.2537 13.4143 1.3549 0.0042 1.4011 0.0382 6.5456 10.8608 11.0893
Feb 40.6723 0.4372 54.3618 63.0701 41.9596 32.8469 5.2446 13.1338 1.3647 0.0042 1.3727 0.0374 6.5255 10.8455 11.0736
Mar 40.7127 0.4293 52.8776 61.3734 41.9971 32.6803 5.2477 13.0966 1.3788 0.0042 1.3700 0.0370 6.5492 10.8564 11.0848
Q2 41.7823 0.4240 54.5772 64.1778 41.4094 33.4572 5.3834 13.6132 1.4007 0.0043 1.3999 0.0372 6.7891 11.1416 11.3761
Apr 41.1422 0.4221 53.5266 62.9378 42.7442 33.2313 5.2999 13.4866 1.4164 0.0042 1.3793 0.0367 6.6485 10.9711 11.2020
May 41.2976 0.4092 53.5926 63.1389 40.9360 33.0769 5.3210 13.6880 1.3898 0.0042 1.3870 0.0372 6.7247 11.0124 11.2440
Jun 42.9069 0.4406 56.6122 66.4568 40.5481 34.0634 5.5291 13.6649 1.3959 0.0044 1.4334 0.0378 6.9941 11.4413 11.6823
Q3 43.6839 0.4418 57.8769 67.6989 39.9615 34.4646 5.6328 13.4939 1.3890 0.0041 1.4636 0.0394 7.1312 11.6481 11.8936
Jul 43.3559 0.4350 56.7089 65.8438 39.7304 34.2142 5.5896 13.6030 1.3950 0.0043 1.4482 0.0385 7.0675 11.5609 11.8044
Aug 43.8639 0.4484 58.4174 67.8155 39.5530 34.4837 5.6559 13.3993 1.3899 0.0042 1.4640 0.0393 7.1644 11.6961 11.9425
Sep 43.8318 0.4420 58.5044 69.4375 40.6011 34.6960 5.6527 13.4795 1.3821 0.0039 1.4785 0.0404 7.1617 11.6874 11.9338
Q4 43.6138 0.4349 59.3340 70.6012 40.4698 34.9138 5.6254 13.6135 1.3771 0.0037 1.4773 0.0411 7.1590 11.6295 11.8747
Oct 43.1825 0.4415 58.8668 69.5227 41.0612 34.7164 5.5693 13.5813 1.3850 0.0038 1.4696 0.0405 7.0723 11.5148 11.7573
Nov 43.5546 0.4357 58.7584 70.1141 40.6381 34.9239 5.6184 13.6441 1.3786 0.0038 1.4758 0.0410 7.1480 11.6137 11.8586
Dec 44.1043 0.4276 60.3768 72.1669 39.7100 35.1010 5.6885 13.6152 1.3677 0.0037 1.4864 0.0418 7.2565 11.7602 12.0081
2014 Ave 44.3952 0.4208 59.0432 73.1731 40.0974 35.0648 5.7252 13.5828 1.3672 0.0037 1.4659 0.0422 7.2076 11.8363 12.0872
Q1 44.8710 0.4366 61.4964 74.2641 40.2572 35.3781 5.7833 13.6135 1.3749 0.0038 1.4824 0.0420 7.3582 11.9648 12.2171
Jan 44.9266 0.4321 61.2469 74.0269 39.8717 35.3263 5.7920 13.6219 1.3657 0.0037 1.4918 0.0422 7.4251 11.9795 12.2323
Feb 44.8950 0.4397 61.3016 74.3135 40.2635 35.4679 5.7867 13.5655 1.3756 0.0038 1.4817 0.0419 7.3893 11.9711 12.2238
Mar 44.7916 0.4381 61.9409 74.4520 40.6363 35.3400 5.7711 13.6530 1.3832 0.0039 1.4738 0.0419 7.2601 11.9437 12.1953
Q2 44.1276 0.4319 60.5270 74.2594 41.1515 35.2354 5.6920 13.6430 1.3600 0.0038 1.4655 0.0429 7.0808 11.7660 12.0143
Apr 44.6416 0.4351 61.6350 74.6995 41.6028 35.5664 5.7572 13.7098 1.3815 0.0039 1.4773 0.0428 7.1717 11.9035 12.1542
May 43.9236 0.4314 60.3484 73.9965 40.8495 35.1096 5.6660 13.6035 1.3513 0.0038 1.4582 0.0429 7.0410 11.7116 11.9588
Jun 43.8175 0.4293 59.5975 74.0822 41.0022 35.0303 5.6528 13.6158 1.3474 0.0037 1.4609 0.0430 7.0296 11.6829 11.9300
Q3 43.7697 0.4217 58.0755 73.1424 40.5386 34.9972 5.6473 13.7205 1.3634 0.0037 1.4592 0.0427 7.0992 11.6706 11.9168
Jul 43.4665 0.4276 58.9257 74.2780 40.8363 34.9877 5.6085 13.6594 1.3531 0.0037 1.4523 0.0426 7.0096 11.5901 11.8342
Aug 43.7673 0.4258 58.3659 73.2141 40.7390 35.0739 5.6473 13.7637 1.3663 0.0038 1.4599 0.0427 7.1085 11.6701 11.9160
Sep 44.0751 0.4119 56.9349 71.9350 40.0406 34.9299 5.6860 13.7383 1.3708 0.0037 1.4653 0.0427 7.1795 11.7517 12.0001
Q4 44.8123 0.3928 56.0738 71.0263 38.4422 34.6484 5.7783 13.3542 1.3706 0.0037 1.4565 0.0413 7.2924 11.9437 12.2006
Oct 44.7979 0.4156 56.8661 72.0912 39.3383 35.1776 5.7746 13.7129 1.3812 0.0037 1.4743 0.0423 7.3101 11.9421 12.1967
Nov 44.9514 0.3875 56.1001 70.9959 38.9172 34.7182 5.7970 13.4555 1.3717 0.0037 1.4646 0.0411 7.3394 11.9815 12.2384
Dec 44.6878 0.3755 55.2554 69.9919 37.0710 34.0494 5.7632 12.8943 1.3589 0.0036 1.4306 0.0405 7.2276 11.9074 12.1666
2015 Q1 44.4238 0.3729 50.0889 67.3003 34.9928 32.7648 5.7283 12.2877 1.3613 0.0035 1.4089 0.0404 7.1220 11.8379 12.0949
Jan 44.6044 0.3764 51.8185 67.5228 36.1260 33.3326 5.7531 12.4698 1.3627 0.0035 1.4109 0.0410 7.1705 11.8776 12.1439
Feb 44.2214 0.3728 50.2159 67.7105 34.4404 32.6549 5.7028 12.2812 1.3575 0.0035 1.4017 0.0402 7.0756 11.7850 12.0397
Mar 44.4457 0.3695 48.2323 66.6675 34.4120 32.3068 5.7290 12.1122 1.3638 0.0034 1.4139 0.0400 7.1198 11.8512 12.1011
Source: Bangko Sentral ng Pilipinas
Singapore
Dollar
Hongkong
Dollar
Malaysian
Ringgit
Thailand
Baht
Indonesian
Rupiah
New
Taiwan
Dollar
Chinese
Yuan
Saudi
Rial
Emirati
Dirham
Australian
Dollar
South
Korean
Won
PeriodUS
Dollar
Japanese
YenEuro
Pound
Sterling
13a EXCHANGE RATES OF THE PESO
period averages; units of foreign currency per peso
2012 Ave 0.0237 1.8893 0.0184 0.0149 0.0229 0.0296 0.1837 0.0731 0.7358 221.5638 0.7003 26.6838 0.1495 0.0888 0.0870
Q1 0.0232 1.8410 0.0177 0.0148 0.0220 0.0294 0.1803 0.0711 0.7199 210.5101 0.6899 26.2748 0.1466 0.0871 0.0853
Jan 0.0229 1.7638 0.0178 0.0148 0.0221 0.0294 0.1780 0.0715 0.7237 207.7151 0.6885 26.2369 0.1448 0.0860 0.0842
Feb 0.0234 1.8355 0.0177 0.0148 0.0219 0.0294 0.1818 0.0709 0.7204 210.8434 0.6926 26.3125 0.1477 0.0879 0.0861
Mar 0.0233 1.9235 0.0177 0.0147 0.0221 0.0294 0.1811 0.0710 0.7156 212.9719 0.6886 26.2749 0.1473 0.0875 0.0857
Q2 0.0234 1.8723 0.0182 0.0148 0.0232 0.0295 0.1814 0.0727 0.7307 216.5841 0.6924 26.9511 0.1480 0.0877 0.0859
Apr 0.0234 1.9036 0.0178 0.0146 0.0226 0.0293 0.1818 0.0716 0.7225 214.2857 0.6900 26.6115 0.1477 0.0878 0.0860
May 0.0233 1.8606 0.0182 0.0146 0.0234 0.0294 0.1812 0.0722 0.7297 215.6863 0.6876 26.9939 0.1476 0.0875 0.0857
Jun 0.0234 1.8528 0.0187 0.0150 0.0235 0.0299 0.1814 0.0743 0.7398 219.7802 0.6995 27.2480 0.1488 0.0877 0.0859
Q3 0.0239 1.8759 0.0191 0.0151 0.0230 0.0298 0.1851 0.0745 0.7481 226.5843 0.7117 27.0445 0.1516 0.0895 0.0877
Jul 0.0239 1.8860 0.0194 0.0153 0.0232 0.0301 0.1851 0.0756 0.7547 224.9489 0.7153 27.2817 0.1520 0.0895 0.0876
Aug 0.0238 1.8694 0.0192 0.0151 0.0227 0.0297 0.1845 0.0741 0.7471 227.2727 0.7123 26.9122 0.1513 0.0892 0.0874
Sep 0.0240 1.8722 0.0186 0.0149 0.0231 0.0295 0.1857 0.0738 0.7425 227.5313 0.7075 26.9397 0.1515 0.0898 0.0880
Q4 0.0243 1.9683 0.0187 0.0151 0.0234 0.0297 0.1882 0.0742 0.7444 232.5766 0.7073 26.4650 0.1516 0.0910 0.0892
Oct 0.0241 1.9019 0.0186 0.0150 0.0234 0.0295 0.1870 0.0737 0.7399 232.3126 0.7056 26.7152 0.1513 0.0905 0.0886
Nov 0.0243 1.9679 0.0190 0.0152 0.0234 0.0297 0.1885 0.0744 0.7463 232.5581 0.7080 26.4329 0.1516 0.0912 0.0893
Dec 0.0244 2.0350 0.0186 0.0151 0.0233 0.0297 0.1890 0.0744 0.7469 232.8590 0.7084 26.2467 0.1520 0.0915 0.0896
2013 Ave 0.0236 2.2977 0.0178 0.0151 0.0244 0.0295 0.1829 0.0742 0.7230 245.5338 0.6997 25.8055 0.1451 0.0884 0.0866
Q1 0.0246 2.2665 0.0186 0.0158 0.0237 0.0304 0.1905 0.0757 0.7320 237.8384 0.7240 26.6305 0.1529 0.0921 0.0902
Jan 0.0246 2.1833 0.0185 0.0154 0.0234 0.0301 0.1903 0.0745 0.7381 237.3247 0.7137 26.1531 0.1528 0.0921 0.0902
Feb 0.0246 2.2870 0.0184 0.0159 0.0238 0.0304 0.1907 0.0761 0.7327 238.0952 0.7285 26.7344 0.1532 0.0922 0.0903
Mar 0.0246 2.3291 0.0189 0.0163 0.0238 0.0306 0.1906 0.0764 0.7253 238.0952 0.7299 27.0040 0.1527 0.0921 0.0902
Q2 0.0239 2.3609 0.0183 0.0156 0.0242 0.0299 0.1858 0.0735 0.7140 234.5069 0.7145 26.8586 0.1474 0.0898 0.0879
Apr 0.0243 2.3692 0.0187 0.0159 0.0234 0.0301 0.1887 0.0741 0.7060 236.4865 0.7250 27.2303 0.1504 0.0911 0.0893
May 0.0242 2.4438 0.0187 0.0158 0.0244 0.0302 0.1879 0.0731 0.7195 237.2881 0.7210 26.9162 0.1487 0.0908 0.0889
Jun 0.0233 2.2697 0.0177 0.0150 0.0247 0.0294 0.1809 0.0732 0.7164 229.7461 0.6976 26.4293 0.1430 0.0874 0.0856
Q3 0.0229 2.2638 0.0173 0.0148 0.0250 0.0290 0.1775 0.0741 0.7199 242.9752 0.6833 25.3944 0.1402 0.0859 0.0841
Jul 0.0231 2.2990 0.0176 0.0152 0.0252 0.0292 0.1789 0.0735 0.7168 232.0888 0.6905 25.9770 0.1415 0.0865 0.0847
Aug 0.0228 2.2300 0.0171 0.0147 0.0253 0.0290 0.1768 0.0746 0.7195 240.1130 0.6830 25.4567 0.1396 0.0855 0.0837
Sep 0.0228 2.2622 0.0171 0.0144 0.0246 0.0288 0.1769 0.0742 0.7235 256.7237 0.6764 24.7496 0.1396 0.0856 0.0838
Q4 0.0229 2.2997 0.0169 0.0142 0.0247 0.0286 0.1778 0.0735 0.7262 266.8148 0.6769 24.3383 0.1397 0.0860 0.0842
Oct 0.0232 2.2651 0.0170 0.0144 0.0244 0.0288 0.1796 0.0736 0.7220 262.1723 0.6805 24.6943 0.1414 0.0868 0.0851
Nov 0.0230 2.2954 0.0170 0.0143 0.0246 0.0286 0.1780 0.0733 0.7254 265.9574 0.6776 24.3813 0.1399 0.0861 0.0843
Dec 0.0227 2.3387 0.0166 0.0139 0.0252 0.0285 0.1758 0.0734 0.7311 272.3147 0.6728 23.9394 0.1378 0.0850 0.0833
2014 Ave 0.0225 2.3819 0.0170 0.0137 0.0250 0.0285 0.1747 0.0736 0.7315 267.1980 0.6823 23.7037 0.1388 0.0845 0.0827
Q1 0.0223 2.2904 0.0163 0.0135 0.0248 0.0283 0.1729 0.0735 0.7274 264.2513 0.6746 23.8233 0.1359 0.0836 0.0819
Jan 0.0223 2.3140 0.0163 0.0135 0.0251 0.0283 0.1727 0.0734 0.7322 270.9677 0.6703 23.7101 0.1347 0.0835 0.0818
Feb 0.0223 2.2745 0.0163 0.0135 0.0248 0.0282 0.1728 0.0737 0.7269 266.3116 0.6749 23.8692 0.1353 0.0835 0.0818
Mar 0.0223 2.2828 0.0161 0.0134 0.0246 0.0283 0.1733 0.0732 0.7229 255.4745 0.6785 23.8908 0.1377 0.0837 0.0820
Q2 0.0227 2.3152 0.0165 0.0135 0.0243 0.0284 0.1757 0.0733 0.7354 262.9928 0.6824 23.3247 0.1412 0.0850 0.0832
Apr 0.0224 2.2981 0.0162 0.0134 0.0240 0.0281 0.1737 0.0729 0.7239 255.7201 0.6769 23.3846 0.1394 0.0840 0.0823
May 0.0228 2.3180 0.0166 0.0135 0.0245 0.0285 0.1765 0.0735 0.7400 261.5193 0.6858 23.3281 0.1420 0.0854 0.0836
Jun 0.0228 2.3295 0.0168 0.0135 0.0244 0.0285 0.1769 0.0734 0.7422 271.7391 0.6845 23.2612 0.1423 0.0856 0.0838
Q3 0.0228 2.3718 0.0172 0.0137 0.0247 0.0286 0.1771 0.0729 0.7335 268.7751 0.6853 23.4344 0.1409 0.0857 0.0839
Jul 0.0230 2.3389 0.0170 0.0135 0.0245 0.0286 0.1783 0.0732 0.7390 269.9229 0.6886 23.4480 0.1427 0.0863 0.0845
Aug 0.0228 2.3485 0.0171 0.0137 0.0245 0.0285 0.1771 0.0727 0.7319 266.4797 0.6850 23.4308 0.1407 0.0857 0.0839
Sep 0.0227 2.4279 0.0176 0.0139 0.0250 0.0286 0.1759 0.0728 0.7295 269.9229 0.6824 23.4244 0.1393 0.0851 0.0833
Q4 0.0223 2.5501 0.0178 0.0141 0.0260 0.0289 0.1731 0.0749 0.7296 272.7728 0.6867 24.2326 0.1371 0.0837 0.0820
Oct 0.0223 2.4064 0.0176 0.0139 0.0254 0.0284 0.1732 0.0729 0.7240 270.2703 0.6783 23.6559 0.1368 0.0837 0.0820
Nov 0.0222 2.5810 0.0178 0.0141 0.0257 0.0288 0.1725 0.0743 0.7290 270.2703 0.6828 24.3576 0.1363 0.0835 0.0817
Dec 0.0224 2.6630 0.0181 0.0143 0.0270 0.0294 0.1735 0.0776 0.7359 277.7778 0.6990 24.6842 0.1384 0.0840 0.0822
2015 Q1 0.0225 2.6819 0.0200 0.0149 0.0286 0.0305 0.1746 0.0814 0.7346 287.6046 0.7098 24.7689 0.1404 0.0845 0.0827
Jan 0.0224 2.6570 0.0193 0.0148 0.0277 0.0300 0.1738 0.0802 0.7338 282.8619 0.7088 24.3937 0.1395 0.0842 0.0823
Feb 0.0226 2.6821 0.0199 0.0148 0.0290 0.0306 0.1754 0.0814 0.7366 287.0091 0.7134 24.9017 0.1413 0.0849 0.0831
Mar 0.0225 2.7067 0.0207 0.0150 0.0291 0.0310 0.1745 0.0826 0.7332 292.9427 0.7072 25.0114 0.1405 0.0844 0.0826
Source: Bangko Sentral ng Pilipinas
Singapore
Dollar
Hongkong
Dollar
Malaysian
Ringgit
Thailand
Baht
Indonesian
Rupiah
New
Taiwan
Dollar
Chinese
Yuan
Saudi
Rial
Emirati
Dirham
Australian
Dollar
South
Korean
Won
PeriodUS
Dollar
Japanese
YenEuro
Pound
Sterling
13b EFFECTIVE EXCHANGE RATE INDICES OF THE PESO
1980=100; period averages
Overall
Trading
Partners 1
Advanced
Trading
Partners 2
Developing
Trading
Partners 3
Overall
Trading
Partners 1
Advanced
Trading
Partners 2
Developing
Trading
Partners 3
2012 14.92 11.61 24.67 84.60 75.09 116.35
Q1 14.59 11.31 24.20 83.48 74.18 114.72
Jan 14.43 11.08 24.07 83.64 74.10 115.17
Feb 14.64 11.33 24.30 83.55 74.09 114.98
Mar 14.72 11.51 24.24 83.24 74.33 114.01
Q2 14.80 11.50 24.50 84.27 74.48 116.24
Apr 14.75 11.51 24.35 84.02 74.59 115.53
May 14.76 11.47 24.43 83.84 74.05 115.69
Jun 14.89 11.52 24.71 84.95 74.79 117.50
Q3 15.09 11.71 24.99 85.19 75.31 117.50
Jul 15.17 11.78 25.12 85.95 76.18 118.32
Aug 15.06 11.69 24.93 85.14 75.35 117.32
Sep 15.03 11.66 24.92 84.50 74.41 116.84
Q4 15.22 11.96 25.00 85.45 76.47 116.87
Oct 15.09 11.76 24.94 84.90 75.21 116.92
Nov 15.25 12.00 25.02 85.81 76.96 117.19
Dec 15.31 12.11 25.04 85.65 77.24 116.51
2013 15.26 12.38 24.45 87.44 81.57 115.85
Q1 15.69 12.63 25.29 90.88 84.84 120.34
Jan 15.53 12.43 25.14 91.17 84.88 120.98
Feb 15.72 12.65 25.35 90.71 84.77 120.01
Mar 15.82 12.82 25.37 90.76 84.87 120.03
Q2 15.53 12.68 24.77 89.32 83.61 118.04
Apr 15.71 12.81 25.07 90.41 84.80 119.30
May 15.75 12.96 24.97 90.39 85.15 118.89
Jun 15.14 12.27 24.27 87.15 80.87 115.93
Q3 14.95 12.13 23.97 84.81 78.90 112.59
Jul 15.08 12.29 24.09 85.75 80.37 113.22
Aug 14.88 12.02 23.92 84.33 78.11 112.32
Sep 14.89 12.07 23.89 84.35 78.23 112.25
Q4 14.92 12.12 23.88 85.00 79.20 112.71
Oct 14.97 12.11 24.04 85.06 78.90 113.18
Nov 14.94 12.15 23.90 85.09 79.45 112.66
Dec 14.85 12.10 23.72 84.84 79.26 112.29
2014 14.91 12.22 23.72 87.17 82.38 114.37
Q1 14.65 11.88 23.48 86.70 81.99 113.70
Jan 14.67 11.94 23.45 87.98 83.80 114.77
Feb 14.63 11.86 23.47 86.45 81.75 113.37
Mar 14.65 11.85 23.53 85.66 80.41 112.96
Q2 14.83 12.04 23.76 86.88 80.97 115.18
Apr 14.67 11.89 23.52 85.87 80.20 113.67
May 14.88 12.07 23.85 87.05 81.03 115.51
Jun 14.94 12.14 23.92 87.71 81.68 116.36
Q3 15.01 12.31 23.84 87.33 82.29 114.83
Jul 15.01 12.23 23.99 87.60 82.15 115.60
Aug 14.96 12.25 23.80 87.15 81.95 114.77
Sep 15.05 12.46 23.74 87.24 82.78 114.11
Q4 15.18 12.69 23.79 88.09 84.65 114.16
Oct 14.93 12.37 23.55 86.86 82.55 113.47
Nov 15.17 12.73 23.71 88.17 85.11 113.85
Dec 15.44 12.98 24.11 89.26 86.27 115.15
2015 15.81 13.40 24.52 94.79 93.93 120.03
Q1 15.81 13.40 24.52 94.79 93.93 120.03
Jan 15.63 13.20 24.30 95.04 94.17 120.35
Feb 15.86 13.42 24.62 94.95 94.04 120.28
Mar 15.94 13.58 24.63 94.39 93.58 119.46
1 Australia, Euro Area, US, Japan, Hong Kong, Taiwan, Thailand, Indonesia, Malaysia, Singapore, South Korea, China,
Saudi Arabia and UAE2
US, Japan, Euro Area and Australia
3 Hong Kong, Taiwan, Thailand, Indonesia, Malaysia, Singapore, South Korea, China, Saudi Arabia and UAE
Source: Bangko Sentral ng Pilipinas
N O M I N A L R E A L
14 TOTAL EXTERNAL DEBT
as of periods indicated; in million US dollars
Grand Total 2,486 13,762 61,426 77,674 2,764 10,333 62,222 75,319
Public Sector - 606 38,740 a 39,346 - 389 38,748 a 39,137
Banks - 606 3,542 4,148 - 389 3,484 3,872
Bangko Sentral ng Pilipinas - - 1,387 1,387 - - 1,332 1,332
Others - 606 2,155 2,761 - 389 2,152 2,541
Non-Banks - - 35,198 35,198 - - 35,265 35,265
CB-BOL - - - - - - - -
NG and Others - - 35,198 35,198 - - 35,265 35,265
Private Sector 2,486 13,156 22,685 38,327 2,764 9,944 23,474 36,182
Banks - 12,565 1,870 14,435 - 9,346 2,563 11,909
Foreign Bank Branches - 6,872 235 7,107 b - 5,205 310 5,514b
Domestic Banks - 5,693 1,635 7,328 - 4,142 2,254 6,395
Non-Banks 2,486 591 20,815 c 23,893 2,764 598 20,911 c 24,272
Inclusion: 31 Dec 2014 31 Mar 2015a
Cumulative foreign exchange revaluation on US dollar-denominated
multi-currency loans from Asian Development Bank and World Bank -61 -59b
Due to Head Office/Branches Abroad accounts of branches and
offshore banking units of foreign banks operating in the Philippines 5,329 3,932c
Obligations under various capital lease agreements; 1,015 1,014
Loans without BSP approval/registration 13,714 13,799
Source: Bangko Sentral ng Pilipinas
31 December 2014
Short-termMedium &
Long-TermTotal
Trade Non-Trade
31 March 2015
Short-termMedium &
Long-TermTotal
Trade Non-Trade
15 SELECTED FOREIGN DEBT SERVICE INDICATORS
for periods indicated; in million US dollars
Q1 Q2 Q3 Q4 Q1p
Debt Service Burden (DSB) 1
1,688 1,587 1,619 1,424 1,659
Principal 925 1,019 883 780 927
Interest 763 567 737 644 732
Export Shipments (XS) 3
10,154 13,669 12,595 11,340 10,408
Exports of Goods and Receipts
from Services and Income (XGSI) 2, 3
22,110 25,506 25,693 25,124 23,888
Current Account Receipts (CAR) 3
23,645 27,082 27,349 26,802 25,368
Gross National Income (GNI) 79,126 86,354 84,706 95,035 83,801
RATIOS (%):
DSB to XS 16.62 11.61 12.86 12.56 15.94
DSB to XGSI 7.63 6.22 6.30 5.67 6.95
DSB to CAR 7.14 5.86 5.92 5.31 6.54
DSB to GNI 2.13 1.84 1.91 1.50 1.98
1 Debt service burden represents principal and interest payments after rescheduling. In accordance with the internationally-accepted concept,
debt service burden consists of (a) principal and interest payments on fixed MLT credits including IMF credits, loans covered by the Paris Club and
Commercial Banks rescheduling, and New Money Facilities; and (b) interest payments on fixed and revolving short-term liabilities of banks and
non-banks but excludes (i) prepayments of future years' maturities of foreign loans and (ii) principal payments on fixed and revolving ST liabilities of
banks and non-banks.2
Includes cash remittances of overseas Filipino workers that were coursed through and reported by commercial banks which are reflected under
Compensation of Employees in the Primary Income account and workers' remittances in the Secondary Income account.3 Based on the accounting principle under the Balance of Payments and International Investment Position Manual, Sixth Edition (BPM6)
p preliminary
Source: Bangko Sentral ng Pilipinas
2014 2015
16 SELECTED FOREIGN INTEREST RATES
period averages; in percent
2015
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
US Prime Rate 3.2500 3.2500 3.2500 3.2500 3.2500 3.2500 3.2500 3.2500 3.2500 3.2500 3.2500 3.2500 3.2500
US Discount Rate 0.7500 0.7500 0.7500 0.7500 0.7500 0.7500 0.7500 0.7500 0.7500 0.7500 0.7500 0.7500 0.7500
US Federal Funds Rate 0.1142 0.1649 0.1570 0.1722 0.1546 0.1140 0.0848 0.0802 0.0767 0.0780 0.0784 0.0930 0.0974
LIBOR (90 days) 0.5141 0.4663 0.4239 0.3170 0.2917 0.2750 0.2614 0.2413 0.2358 0.2282 0.2343 0.2363 0.2603
SIBOR 1 (90 days) 0.4375 0.4375 0.4120 0.4063 0.4063 0.4063 0.4063 0.4062 0.4033 0.4038 0.4055 0.4254 0.7503
1 SIBOR data refers to SIBOR rates in Singapore dollar
Source: Bloomberg, Asian Wall Street Journal, Reuters
20132012 2014
17 BALANCE SHEET OF THE BANGKO SENTRAL NG PILIPINAS
as of periods indicated; in billion pesos
Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec u/p
Assets 3,727.9 3,684.2 3,889.7 3,975.9 4,049.0 4,091.3 4,148.2 4,202.1 4,040.9 4,028.2 4,062.2 4,087.5
International Reserves 3,248.1 3,202.9 3,408.2 3,424.3 3,416.3 3,494.4 3,613.9 3,670.0 3,545.2 3,500.3 3,547.2 3,535.8
Foreign Exchange Receivable 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Domestic Securities 219.0 217.3 220.3 218.1 220.9 219.8 221.5 219.5 219.0 222.0 222.0 222.4
Loans and Advances 115.8 119.4 116.5 118.5 108.7 101.1 97.2 94.5 85.6 85.2 85.0 85.3
Revaluation of International Reserves 0.0 0.0 0.0 64.6 131.4 92.5 32.2 32.6 0.0 26.1 7.5 41.7
Bank Premises and Other Fixed Assets 15.6 16.1 16.3 16.5 16.4 17.5 17.6 17.7 17.7 17.8 18.1 18.1
Derivative Instruments in a Gain Position 0.5 0.3 0.2 1.5 0.3 5.2 1.0 0.4 0.0 -0.1 0.7 0.1
Derivative Asset 0.7 0.7 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Other Assets 128.3 127.4 128.2 132.4 155.1 160.8 164.8 167.4 173.3 177.0 181.8 184.0
Liabilities 3,606.3 3,582.7 3,815.1 3,911.4 3,996.6 4,041.7 4,100.3 4,161.3 3,985.3 3,973.5 4,013.3 4,043.2
Currency Issue 576.2 555.5 559.6 692.7 653.2 626.6 633.9 797.5 708.0 705.0 714.5 929.5
Deposits 2,630.2 2,657.2 2,851.6 2,854.5 2,977.4 3,038.5 3,087.6 2,978.4 2,855.2 2,883.2 2,909.4 2,724.6
Reserve Deposits of Other Depository Corporations (ODCs) 1
680.2 716.6 724.7 782.6 836.3 913.6 987.7 1,128.3 1,116.4 1,251.3 1,285.5 1,386.7
Reserve Deposits of Other Financial Corporations (OFCs) 2
0.6 0.3 0.3 0.3 0.4 0.4 0.4 0.5 0.5 3.2 4.1 7.7
Special Deposit Accounts 3
1,577.1 1,572.3 1,826.3 1,640.1 1,869.5 1,710.5 1,554.3 1,367.3 1,332.4 1,163.0 1,066.3 845.0
Treasurer of the Philippines 4
293.9 259.7 214.3 340.9 193.6 339.4 476.8 412.3 333.6 390.1 476.7 415.2
Other Foreign Currency Deposits 3.5 23.6 15.8 20.5 7.4 0.0 0.1 0.0 0.1 0.0 0.0 0.0
Foreign Financial Institutions 43.0 40.3 40.3 40.3 40.3 37.2 36.1 35.5 35.5 39.7 39.5 39.5
Other Deposits 5
31.9 44.4 29.9 29.8 29.8 37.4 32.3 34.5 36.9 35.8 37.4 30.4
Foreign Loans Payable 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.0
Net Bonds Payable 21.9 21.1 21.3 20.5 20.9 21.6 22.2 22.2 22.9 21.8 22.9 22.4
Derivative Instruments in a Loss Position 3.9 5.8 0.9 0.6 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Derivatives Liability 0.3 0.3 0.2 0.1 0.2 0.0 0.0 0.0 0.0 0.1 0.0 0.0
Allocation of SDRs 55.7 53.8 53.9 52.9 51.4 54.5 56.0 57.3 58.0 56.5 55.8 54.3
Revaluation of International Reserves 50.7 4.8 38.9 0.0 0.0 0.0 0.0 0.0 33.6 0.0 0.0 0.0
Reverse Repurchase Agreements 3
256.6 274.1 277.8 278.5 282.7 288.7 289.6 293.9 296.5 296.3 299.1 302.3
Other Liabilities 10.7 10.0 10.9 11.5 10.6 11.6 10.9 12.0 10.9 10.5 11.5 10.0
Net Worth 121.6 101.5 74.6 64.5 52.4 49.6 47.9 40.8 55.6 54.7 48.9 44.3
Capital 20.0 20.0 20.0 40.0 40.0 40.0 40.0 40.0 50.0 50.0 50.0 50.0
Surplus/Reserves 101.6 81.5 54.6 24.5 12.4 9.6 7.9 0.8 5.6 4.7 -1.1 -5.7
Note: Details may not add up to totals due to roundingu Unaudited/Preliminary. Starting with end-December 2005, BSP financial statements have been prepared in compliance with some of the requirements of the Philippine Financial Reporting Standards (PFRS) and Philippine Accounting Standards (PAS),
both of which have been aligned with the International Financial Reporting Standards (IFRS) and International Accounting Standards (IAS).1 ODCs are deposit-generating institutions other than the BSP such as universal and commercial banks (UB/KBs), specialized government banks (SGBs), thrift banks (TBs), rural banks (RBs) and non-banks with quasi-banking functions (NBQBs).
2 OFCs are trust units of banks.
3 Includes accrued interest payables
4 Includes foreign currency deposits
5 Mostly GOCC deposits
Source: Bangko Sentral ng Pilipinas
2012 2013 2014
18 INCOME POSITION OF THE BANGKO SENTRAL NG PILIPINAS
for periods indicated; in billion pesos
Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 r
FY r
Q1 Q2 Q3 Q4 u/p
FY u/p
Revenues 17.223 17.851 15.279 15.376 65.729 15.239 20.830 10.426 10.081 56.576 10.524 12.961 12.690 14.082 50.257
Interest Income 10.485 10.161 10.145 10.125 40.916 7.923 7.640 8.986 7.878 32.427 7.656 7.908 8.266 9.453 33.283
International Reserves 8.202 7.511 7.502 7.598 30.813 6.092 5.545 5.753 6.019 23.409 5.966 6.045 6.121 6.900 25.032
Domestic Securities 0.984 1.206 1.282 1.025 4.497 0.523 0.387 0.524 0.457 1.891 0.297 0.501 0.792 0.856 2.446
Loans and Advances 0.741 0.774 0.791 0.905 3.211 0.668 0.906 1.828 0.560 3.962 0.513 0.438 0.426 0.721 2.098
Others 0.558 0.670 0.570 0.597 2.395 0.640 0.802 0.881 0.842 3.165 0.880 0.924 0.927 0.976 3.707
Miscellaneous Income 6.647 7.539 4.957 5.097 24.240 6.960 12.676 1.056 1.912 22.604 2.724 4.767 4.159 4.510 16.160
Net Income from Branches 0.091 0.151 0.177 0.154 0.573 0.356 0.514 0.384 0.291 1.545 0.144 0.286 0.265 0.119 0.814
Expenses 28.302 27.115 27.727 27.544 110.688 23.261 20.634 21.985 19.034 84.914 15.097 16.010 19.433 19.961 70.501
Interest Expenses 24.492 22.028 22.793 21.449 90.762 18.989 13.458 13.561 13.521 59.529 11.131 10.646 11.982 12.478 46.237
Legal Reserve Deposits of Banks 1.640 0.697 0.006 0.005 2.348 0.006 0.005 0.006 0.006 0.023 0.006 0.006 0.002 0.000 0.014
National Government Deposits 0.944 1.385 1.331 2.029 5.689 1.291 0.743 1.822 2.057 5.913 1.180 1.383 2.076 2.199 6.838
BSP Debt Instruments 2.443 2.392 2.666 2.519 10.020 2.487 2.533 2.581 2.603 10.204 2.605 2.619 2.761 3.073 11.058
Special Deposit Accounts 18.960 17.051 18.300 16.444 70.755 14.751 10.522 8.651 7.492 41.416 6.932 6.149 6.637 6.528 26.246
Loans Payable and Other Foreign Currency Deposits 0.483 0.474 0.465 0.450 1.872 0.453 0.496 0.479 0.497 1.925 0.505 0.474 0.494 0.669 2.142
Other Liabilities 0.022 0.029 0.025 0.002 0.078 0.001 -0.841 0.022 0.866 0.048 -0.097 0.015 0.012 0.009 -0.061
Cost of Minting/Printing of Currency 0.951 1.175 1.224 2.219 5.569 1.121 1.620 1.252 1.773 5.766 0.924 1.467 1.484 2.889 6.764
Taxes and Licenses 0.301 0.260 0.272 0.236 1.069 0.207 1.720 3.800 0.206 5.933 0.241 0.170 1.959 0.276 2.646
Others 2.558 3.652 3.438 3.640 13.288 2.944 3.836 3.372 3.534 13.686 2.801 3.727 4.008 4.318 14.854
Net Income Before Gain/Loss(-) on FXR Fluctuations,
Income Tax Expense and Capital Reserves -11.079 -9.264 -12.448 -12.168 -44.959 -8.022 0.196 -11.559 -8.953 -28.338 -4.573 -3.049 -6.743 -5.879 -20.244
Gain/Loss(-) on Foreign Exchange Rate Fluctuations 1
-8.686 -9.567 -17.311 -14.812 -50.376 -6.256 -0.290 8.758 3.386 5.598 8.978 -0.741 0.852 -0.153 8.936
Income Tax Expense 0.000 0.000 0.000 0.045 0.045 0.000 1.718 0.486 0.108 2.312 0.000 0.000 0.000 0.000 0.000
Capital Reserves 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
Net Income Available for Distribution -19.765 -18.831 -29.759 -27.025 -95.380 -14.278 -1.812 -3.287 -5.675 -25.052 4.405 -3.790 -5.891 -6.032 -11.308
u/p Unaudited/Preliminary. Starting with end-December 2005, BSP financial statements have been prepared in compliance with some of the requirements of the Philippine Financial Reporting Standards (PFRS) and Philippine Accounting Standards (PAS),
both of which have been aligned with the International Financial Reporting Standards (IFRS) and International Accounting Standards (IAS).1 This represents realized gains or losses from fluctuations in FX rates arising from foreign currency-denominated transactions of the BSP, including: 1) rollover/re-investments of matured FX investments with foreign financial institutions and
FX-denominated government securities; 2) servicing of matured FX obligations of the BSP; and 3) maturity of derivatives instruments.r Revised due to the restatement of prior period adjustments per PAS No. 8.
Source: Bangko Sentral ng Pilipinas
2012 2013 2014