Category: Business Mirror

MORE than 1,000 delegates from 62 countries from AsiaPacific, Europe, Africa, and the Americas are converging in Manila this week for one of the year’s biggest diplomatic gatherings.

Despite the scale, authorities say there will be no suspension of classes and no special lanes on city roads.

Association of Southeast Asian Nations foreign ministers-except Myanmar’s-opened their meeting in Manila Monday, their third inperson session this year and seventh overall if virtual and informal meetings are included.

Alongside the 10 Asean ministers, top diplomats from dialogue partners such as the United States, Russia, China, the European Union, Japan, South Korea, India, Canada, Australia, New Zealand, and the United Kingdom are expected in the coming days.

Hellen Barbers de la Vega, directorgeneral of the Asean National Organizing Council, said preparations remain manageable: ‘As of this writing, we have no indication, re: suspension of classes.’

In Cebu last May, classes were suspended when Asean leaders met for the 48th Summit.

De la Vega added there is no need yet for designated Asean lanes on city roads, though special lanes are in place inside the airport for arriving delegates.

The Manila meetings include Asean Plus One sessions with dialogue partners and Asean Plus Three sessions with China, Japan, and South Korea. There will also be conferences on East Asian cooperation for Palestinian development and on MekongJapan initiatives.

Foreign Secretary Ma. Theresa Lazaro and Asean SecretaryGeneral Kao Kim Hourn will hold trilateral meetings each with Trkiye, Norway, Switzerland, and Brazil foreign ministers.

On Thursday, Asean ministers will meet separately with China, Japan, and South Korea, then convene with the Asean Regional Forum (ARF) to tackle regional and global security issues.

Later that day, the 19 members of the East Asia Summit-comprising 11 Asean states plus Australia, China, India, Japan, New Zealand, South Korea, Russia, and the United States-will hold their own foreign ministers’ meeting.

The highlight is Friday’s commemoration of the 50th anniversary of the Asean Treaty of Amity and Cooperation (TAC), the bloc’s peace blueprint. In addition to the 58 current signatories, five or six new countries-including Sweden, Poland, Romania, Cyprus, and Lithuania-are expected to accede.

DFA Spokesperson Dominic Xavier Imperial said the weeklong meetings provide ‘a very good opportunity, a venue for dialogue partners in Asean to engage and discuss whatever is impacting not only regionally but also globally.’

Beyond the South China Sea disputes, Asean will address the Myanmar crisis, Cambodia-Thailand border tensions, and global conflicts including the IranUS war, RussiaUkraine war, and the Korean Peninsula.

Eight Middle East states-Bahrain, Egypt, Iran, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE-are already TAC parties, along with Russia, Ukraine, South Korea, and North Korea.

Imperial emphasized Asean’s resilience: ‘Despite the challenges, it remains united, it remains towards the path of maintaining Asean centrality…adhering to the principles of the Asean Charter.’

Decisions reached by the foreign ministers will be elevated to Asean leaders and dialogue partners, who are expected to meet again in Manila this November.

This Thursday, July 9, 2026, photo courtesy of the Land Bank of the Philippines shows Landbank President and CEO Lynette V. Ortiz (right) and Makati City Mayor Maria Lourdes Nancy S. Binay-Angeles signing an agreement at the Makati City Hall to advance the digitization of government transactions through the Landbank’s Link.BizPortal.

Under the agreement, Landbank will serve as the depository and financial settlement bank for Link.BizPortal transactions of the City Government of Makati.

The bank will also provide transaction monitoring, reporting, and technical support to ensure a smooth transition.

Travelers exploring Cebu province can now access 17 accredited clean toilet stops strategically located along key tourism and transportation corridors under the provincial government of Cebu’s Clean Toilet Stop Partnership Program.

The initiative, implemented through partnerships with local governments and private establishments, is designed to provide motorists, commuters, residents, and both local and international tourists with clean, safe, and accessible restroom facilities while traveling across the province.

Beyond improving public convenience, the program also promotes Cebuano hospitality and encourages greater community participation in tourism development.

The accredited toilet stops are distributed across northern and southern Cebu to ensure wider accessibility.

In northern Cebu, the designated facilities include the SeaOil Gas Station in Poblacion, Daanbantayan; ARC Fuel Gas Station in Purok Upo, Hagnaya, San Remigio; Shell Gas Station in Dakit, Bogo City; Bastap in Luyang, Carmen; Boardwalk in Poblacion, Compostela; Shell Gas Station and Café in Hika, Poblacion, Compostela; Shell Gas Station along the Central Nautical Highway in Labogon, Mandaue City; Mactan Shrine in Punta Engaño, Lapu-Lapu City; and the Shell Gas Station along M.L. Quezon National Highway in Pusok, Lapu-Lapu City.

Meanwhile, accredited facilities in southern Cebu include RM Shoppe in Poblacion, Sibonga; Caltex (SOS Ceres Stop) in Poblacion, Argao; VANZ Gas Station in Lagunde, Oslob; SeaOil in Bonbon, Aloguinsan; Fill It Up in Dakit, Barili; Shell Gas Station in South Poblacion, Naga City; Robinsons Shell Cebu in Barangay Tejero, Cebu City; and Jas Trading and General Services Inc. along Diosdado Macapagal Highway in Toledo City.

To make the facilities easier to locate, the provincial government has also provided a QR code that directs travelers to the Google Maps locations of all accredited Clean Toilet Stops.

Last month, the program was formally launched after the Cebu Provincial Government signed a Memorandum of Agreement (MOA) with participating local governments and private establishments, paving the way for the accreditation of public and private facilities as official toilet stops along major tourism and transport routes.

Gov. Pamela Baricuatro said the quality of tourism should be measured not only by visitor arrivals but also by the experience guests have while exploring the province.

She emphasized that seemingly small details, such as access to clean restrooms, can leave a lasting impression on visitors, contribute to better public health, and reinforce Cebu’s standing as one of the country’s premier tourism destinations.

She added that providing a comfortable, safe, and welcoming environment for guests reflects the province’s commitment to delivering quality tourism experiences.

The governor also expressed gratitude to business owners, managers, and local government leaders who partnered with the provincial government, noting that tourism development is a shared responsibility among both the public and private sectors. Provincial Tourism Officer Rowena Lu Y. Montecillo said participating establishments underwent inspection and validation to ensure compliance with the standards set under the Clean Toilet Stop Partnership Program before receiving accreditation.

THE Senate sitting as the Impeachment Court on Monday allowed the prosecution to secure subpoenas for selected bank documents, as well as records from the Anti-Money Laundering Council (AMLC) and the Bureau of Internal Revenue (BIR), of Vice President Sara Z. Duterte, her husband, lawyer Manases Carpio, Carpio Lawyers; and 19 entities identified by the prosecution.

In a ruling, Impeachment Court Presiding Officer Francis Escudero overruled the defense’s objections and allowed the production of financial documents covering the period from 2007 to 2021, saying these would help establish a financial baseline relevant to the allegations under Article II, which involves claims of unexplained wealth.

After reviewing the requests, Escudero said the court found the documents sufficiently defined, identifiable, and materially relevant to the case.

He noted that similar financial records had been examined in past impeachment proceedings, including that of former Chief Justice Renato Corona, and cited the law recognizing impeachment cases as exceptions to bank secrecy protections.

The court approved requests involving 19 corporations and Carpio Lawyers, finding preliminary evidence linking Duterte to these entities through official filings and her declared assets. It ruled that the subpoenas were not exploratory in nature and limited them to peso-denominated accounts relevant to Article II.

However, foreign currency accounts were excluded without written consent from depositors. Requests involving JTC Group of Companies and Pikimong Pikimong Philippines Corporation were denied due to insufficient initial linkage.

Deadline

THE Senate Impeachment Court ordered banks to submit the requested records by July 30, 2026, with the documents initially to be reviewed in-camera by the presiding officer to prevent the disclosure of sensitive information. Only peso-denominated accounts will be covered, while foreign currency deposits are excluded without the consent of the depositors.

Subpoenas were also issued to the AMLC for records involving Carpio, whether individually or jointly with Duterte, as well as accounts tied to their law firm and several corporate entities. However, the court denied requests for records linked to certain companies, citing the prosecution’s failure to establish their relevance to the case.

Escudero emphasized that the records from 2007 to 2021 would be used solely to establish a comparative financial baseline and not to prove separate impeachable offenses outside the current charges. He added that the admissibility of the documents would still depend on the prosecution’s ability to link them to alleged unexplained wealth during Duterte’s term.

INDEPENDENT think tank Stratbase Institute on Friday said the Philippines made the right strategic and diplomatic decision in pursuing the 2016 arbitral ruling, as evidenced by the nearly 30 diplomatic missions that joined the country in commemorating the ruling’s 10th anniversary.

The broad international participation underscored growing global support for the Philippines’ assertion of its rights in the West Philippine Sea and reaffirmed the significance of the landmark ruling.

In a statement, Stratbase Institute president Victor Andres Manhit said the presence of representatives from 26 foreign missions at its recent Makati forum marking the award’s 10th anniversary reflected the international community’s resolve to ensure that the landmark ruling remains relevant amid rising tensions in the West Philippine Sea.

‘By standing firmly with the Philippines, these partners are ensuring that the 2016 Arbitral Award remains a living document that defines the future of a free, open, and stable Indo-Pacific,’ he said.

The forum was headlined by ambassadors from Australia, Canada, the European Union, France, Germany, India, Japan, the Republic of Korea, New Zealand, the United Kingdom, who all affirmed their support for the arbitral ruling.

Also present during the forum were the chief of missions of the United States, Ukraine, the Netherlands, Ireland, Israel, Denmark, Czech Republic, Finland, Sweden, Norway, Slovenia, and Austria.

The foreign missions of Malaysia, Vietnam, Singapore, Italy and Thailand were also represented in the forum.

The event comes as international recognition of the arbitral ruling continues to expand.

Data from the Asia Maritime Transparency Initiative showed that as of January 2025, 27 governments had publicly called for the award to be respected.

Between November 2022 and October 2024, 18 countries-including France, South Korea, and Norway-strengthened their positions by explicitly recognizing the ruling as legally binding.

Last July 12, EU Foreign Minister Kaja Kallas, on behalf of the 27 EU member states, affirmed that the ‘2016 Arbitral Award, adopted by the independent and impartial arbitral tribunal in accordance with Unclos, was final and legally binding upon the parties to the proceedings.’

‘As a landmark decision in the peaceful settlement of disputes, it must be respected and fully implemented by the parties involved,’ she said.

She added that the EU was concerned by the steady increase of tensions and dangerous incidents in the South China Sea ‘and firmly opposes any unilateral actions that threaten to undermine regional stability and the international order based on international law and the rule of law.’

Other ambassadors were equally firm in their recognition of the award’s finality.

During the forum, Indian Ambassador Sri Harsh Kumar Jain affirmed that New Delhi considers the 2016 Arbitral Award to be ‘final and binding’ and that it constitutes the basis for peaceful dispute resolution. South Korean Ambassador Lee Sang-hwa said Korea fully supported the Philippines’ chairmanship of the 2026 Association of Southeast Asian Nations summit, adding that ‘prosperity flourishes when seas unite rather than divide, when rules prevail over coercion, and when freedom of navigation and overflight are respected in accordance with international law.’

The Stratbase Institute acknowledged these nations for their courage in calling out dangerous and destabilizing conduct, such as the use of water cannons and most recently the launch of a nuclear-capable missile in the Pacific.

Manhit said the collective recognition is being translated into tangible action, with Australia planning a new defense cooperation arrangement for 2026 and the United Kingdom commencing formal negotiations for its own Status of Visiting Forces Agreement (Sofa).

An agreement between the Bases Conversion and Development Authority (BCDA) and the Subic Bay Metropolitan Authority (SBMA) on Monday, July 20, has designated the Port of Subic as the preferred maritime gateway for Pax Silica operations within the Luzon Economic Corridor.

BCDA President and Chief Executive Officer Joshua M. Bingcang and SBMA Chairman and Administrator Eduardo Jose L. Aliño signed the agreement in preparation for the establishment of an ‘AI-Native Industrial Acceleration Hub’ in New Clark City, Tarlac, under the Pax Silica project.

Under the BCDA-SBMA memorandum of understanding (MOU), the two agencies established a cooperation framework to support, study, and promote the use of Subic Bay as the preferred port for Pax Silica’s maritime logistics, cargo handling, import and export, data integration, and related supply chain activities.

The collaboration primarily involves the joint evaluation of current maritime logistics infrastructure in Subic to determine handling capacity for specialized cargo requirements of the Pax Silica initiative; studying the feasibility of establishing ‘green lanes’ or expedited import and export processing protocols in Subic for accredited Pax Silica locators; and exploring the interoperability of their digital logistics and port management platforms for a secure exchange of manifest data, supply chain tracking, and terminal operations metrics.

The parties also agreed to jointly map and optimize the multimodal logistics corridor connecting the Port of Subic to the BCDA-administered economic zones in Pampanga and Tarlac to ensure a seamless end-to-end supply chain.

In his message during the MOU signing, Aliño said the designation of Subic as the preferred maritime gateway is ‘a crowning recognition of the invaluable role that the Port of Subic can possibly play in support of the initiatives of the national government [for the] Pax Silica [project].’

‘With the Luzon Economic corridor as a trilateral, strategic, and high-impact logistics and industrial hub that would connect key economic gateways across western Luzon, we at the SBMA are putting the Port of Subic and its facilities at the disposal of the Pax Silica initiative to maximize international trade and supply chain resilience,’ Aliño added.

The Subic chief also gave the assurance that Subic’s deep-water port and shipyard facilities can quickly transport raw materials and processed tech goods between Subic and the proposed AI hub in New Clark City.

He added that Subic also has parcels of land available for strategic development to align with the demands of the Pax Silica initiative.

Likewise, Subic locators and stakeholders are willing to provide their expertise and services to the Pax Silica project, Aliño said.

Pax Silica is an international coalition led by the United States to secure global supply chains for artificial intelligence (AI), semiconductors, and critical minerals.

The Philippines joined the US-led Pax Silica coalition as its 13th member last April and has agreed with the U.S. to develop a 4,000-acre economic security zone at the New Clark City to process locally extracted critical minerals and build next-generation AI infrastructure and computer chips. The New Clark City AI hub is expected to anchor the Philippines’ roles in the Pax Silica Initiative and place the country inside a trusted global technology network, the BCDA said.

Environmental impact assessment

THE Department of Environment and Natural Resources (DENR) is now conducting an environmental impact assessment of the Pax Silica project amid emerging concerns on its possible negative effects in the communities to be covered by the United States (US)-led initiative, Malacañang said.

Pax Silica aims to challenge China’s dominance in semiconductors and artificial intelligence (AI) by establishing new supply chains by building data centers and rare earth processing facilities in partner countries of the US.

As more Filipino professionals navigate increasingly demanding careers and lifestyles, preventive healthcare is becoming less of an afterthought and more of a necessity.

From routine executive health screenings to proactive wellness programs, a growing number of business leaders, entrepreneurs, and working professionals are prioritizing early detection and long-term health management as part of their everyday lives. The shift reflects a broader understanding that staying productive, achieving personal goals, and maintaining overall well-being require more than treating illnesses when they arise-they require preventing them in the first place.

This evolving mindset is something Fullerton Health Philippines has witnessed firsthand.

Now celebrating their second anniversary, the organization continues to champion preventive healthcare as an essential part of modern living, helping more Filipinos take proactive steps toward better health through executive health screening, advanced diagnostics, and personalized wellness solutions.

‘Our mission has always been to empower individuals to take control of their health before illnesses develop or progress. As we celebrate this milestone, we remain focused on helping more people live fuller, healthier lives through preventive care,’ said Carmie de Leon, Country General Manager of Fullerton Health Philippines.

The growing emphasis on prevention has fueled Fullerton Health Philippines’ growth over the past two years. Since opening its doors, the organization has established itself as a trusted partner in executive health by combining advanced diagnostic capabilities, efficient patient experiences, and comprehensive health screening programs designed to offer efficient, fast, and seamless preventive healthcare experience.

A significant highlight in Fullerton Health Philippines’ journey this year was the recognition received at the Healthcare Asia Awards 2026, where they were honored as Specialty Clinic of the Year (Executive Health) – Philippines. The award recognizes the organization’s excellence in executive health screening, mainly in offering advanced diagnostic imaging technologies, evidence-based healthcare practices, and patient-centered care designed to support early detection and better health outcomes.

Fullerton Health Philippines has also expanded access through strategic partnerships with major HMO providers, healthcare organizations, and digital health platforms, making executive health screening more convenient for more Filipinos.

The company has also broadened its preventive health offerings through initiatives such as packages bundled with wellness perks that is also attractive for medical tourism, reflecting its belief that long-term well-being is supported by both preventive healthcare and holistic wellness experiences, as well as offering discounts in partnership with major payment networks to provide a more affordable option for Filipinos.

With this, Fullerton Health Philippines continues to receive consistent five-star reviews from clients. The strong satisfaction ratings reinforce the company’s position as a trusted partner in preventive healthcare.

For Founder and Chairman of COL Financial Group, Inc., Edward K. Lee, preventive healthcare is an essential investment in maintaining both personal well-being and the ability to lead with confidence. ‘Running a business means making decisions that prepare you for the future, and I believe the same mindset should apply to your health. Undergoing regular executive health screenings means I’m taking proactive steps to stay healthy for myself, my family, and the people who depend on me,’ said Lee.

Similarly, President of Upgrade Energy Philippines Inc., Ruth Yu-Owen, who balances leadership responsibilities in the renewable energy sector while championing initiatives that create opportunities for Filipino women, sees preventive healthcare as an important part of sustaining both her personal well-being and professional pursuits.

‘Being able to undergo a thorough health check-up provides me with the opportunity to improve my diet and make necessary lifestyle changes. Most importantly, it gives me peace of mind,’ she shared.

These personal experiences reflect a broader shift toward proactive healthcare, where prevention becomes a cornerstone of long-term wellness rather than a response to illness.

Guided by its advocacy to help individuals to Live Fuller, Fullerton Health Philippines continues to champion a future where preventive healthcare is not just an option, but an integral part of everyday life.

THE country’s June nationwide average electricity rate reached P12.43 per kilowatt hour (kWh), making it the highest in Southeast Asia for that month, according to the Department of Energy (DOE).

‘In Asean, we had the highest electricity rate for the month of June. We were even higher than Singapore,’ said DOE undersecretary Rowena Guevara during an online news briefing Monday.

Singapore’s average rate was P0.093 per kWh lower.

The DOE official attributed this to the rising electricity rate in the Visayas region which suffered the highest rates due to a severe supply shortage, caused by 21 power plants going on forced outage.

‘The main reason, particularly in the Visayas, is that electricity there is the most expensive because of a supply shortage. We had 21 power plants on forced outage, making the region dependent on imported power from Luzon and Mindanao. The Visayas has also been under yellow alert since May 13, and that has driven prices higher,’ said Guevara. Related story in B8 News.

A total of 60 yellow alerts were hoisted over the Visayas power grid from the start of the year up to July 17.

For the rest of the country, demand was also high during the summer months. As a result, more expensive power plants were dispatched to avoid blackouts.

For July, Guevara could not yet say if the country will still be charging the highest power rates. ‘The July data will remain unknown until July 26,’ she said.

By accelerating the integration of new renewable energy (RE) supplies, the DOE’s Task Force 200 mitigates rate spikes and reduces the country’s reliance on imported fossil fuels. ‘Of course, we always say electricity is expensive because we still lack supply. But Task Force 200 can help because many renewable energy projects have already entered the grid, as reported earlier,’ she added.

Last month, the agency reported the completion of 400 energy projects this year under Task Force 200, adding 1.5 gigawatts (GW) of capacity.

Task Force 200 is a three-year initiative mandated by President Ferdinand R. Marcos Jr. to fast-track 200 power projects by resolving regulatory bottlenecks and coordinating with private developers.

This initiative aligns with the Philippine Energy Plan, which targets increasing the country’s share of RE to 35 percent by 2040 and 50 percent by 2050.

Ahead of the State of the Nation Address (SONA) scheduled on July 27, various groups launched the AGOS platform to highlight the impact of high fuel costs and environmental degradation on small-scale fishers while demanding policies for local food systems.

Also, energy consumer groups will hold a ‘People’s State of the Nation’ on Tuesday to protest the government’s alleged failure to address high costs of electricity and its lack of preparedness amid ongoing national energy emergency.

Guevara said that the latest fuel price hike may result in higher electricity rates. ‘Depending on the price increase of fuel in the next few weeks, we might see an increase in the price of electricity,’ she said.

Meanwhile, DOE data showed that Southern Leyte Cooperative Inc. (SOLECO) recorded the highest power rate in June at P16.57 per kilowatt hour (kWh).

Shopping mall operator SM Prime Holdings Inc. is further expanding SM Xiamen City in China, its first development outside the Philippines, with a new commercial concept and is planning to operate beyond mall hours.

The company said it will open its P1.5-billion Chao Block, which is an extension of existing malls in the development, targeting the younger population in the area.

The 19,403 square-meter Chao Block is envisioned as a ‘neo-urban block’ that extends beyond the traditional mall model.

Developed with a diverse mix of tenants and partners, it will bring together independent founders, local entrepreneurs, cultural curators and first-to-market concepts.

Tenants will be encouraged to go beyond operating stores by hosting workshops, product launches, exhibitions, community events and brand collaborations.

‘SM Xiamen City holds a distinct place in our company’s history. Being our first overseas investment, it has served as a long-term platform for learning, expansion and growth in China,’ SM Prime President Jeffrey C. Lim said.

‘As Xiamen continues to develop, we intend to keep strengthening the property and the local entrepreneurs so it remains an important part of the city’s commercial landscape.’

The name ‘Chao’ draws on the idea of a fourth state of matter beyond water’s three conventional forms-liquid, solid and gas-representing openness, fluidity and the limitless potential of co-created commerce.

The first phase of Chao Block is scheduled to open in September this year, while the second phase is targeted for completion in the fourth quarter of 2027.

Established in 2001 as a one-stop destination for the mainstream consumer market, SM Xiamen City has continued to evolve with the changing needs of the surrounding community.

In 2009, the property expanded and added 109,922 square meters of gross floor area (GFA), repositioning it as an upscale lifestyle shopping center. In 2022, it added a further 129,195 square meters of GFA and refreshed its tenant mix to respond to younger consumers and growing demand for social and experiential spaces.

SM Xiamen City is now a major shopping, dining and leisure destination, from a sleepy town just more than a decade ago. It hosts more than 500 stores, including international brands such as Apple Store, Sephora, Maison Le Fame, Lululemon, alongside a Walmart and a broad selection of restaurants and cafés.

‘China’s commercial real estate market is highly competitive, but the support of our tenants and customers has kept SM Xiamen City relevant. As we mark our 25th anniversary, we look forward to bringing a new commercial format to the next wave of consumers, entrepreneurs and brands,’ Lim said.

WHILE the Philippine financial system’s total resources reached a record P37.6 trillion as of May 2026 despite inflationary pressures and global uncertainty, the system should ensure that this growing pool of funds will be channeled into productive investments, micro, small, and medium enterprises (MSMEs) and job creation, according to experts.

Jonathan L. Ravelas, senior adviser at Reyes Tacandong and Co. explained that the 10-percent growth in the Philippine financial system’s total resources to a record P37.6 trillion is ‘a strong indication that the economy remains resilient despite pockets of inflationary pressure and global uncertainty.’

Looking ahead, however, Ravelas pointed out: ‘The key challenge now is ensuring that this growing pool of financial resources is channeled into productive investments, infrastructure, MSMEs, and job creation. Ultimately, the quality of how these funds are deployed will matter more than the size of the balance sheet itself.’

Ravelas emphasized the importance of picking quality over the size of the financial system’s balance sheet after data from the Bangko Sentral ng Pilipinas (BSP) showed that the combined funds and assets of banks (excluding the central bank) and non-bank financial institutions (NBFIs) climbed to a record P37.64 trillion as of end-May 2026, up 10 percent from the P34.22 trillion as of May 2025.

Data from the central bank indicated that this is the second straight month that financial resources posted a double-digit growth rate this year.

On a month-on-month basis, BSP data showed total resources held by the country’s financial system increased by 0.88 percent from the P37.31 trillion as of end-April 2026.

According to Ravelas, the primary drivers were ‘continued deposit growth, expanding bank lending, healthy remittance inflows, and rising economic activity, particularly through the universal and commercial banks that account for the bulk of the sector’s assets.’

‘More importantly, this tells us that liquidity remains ample and confidence in the financial system is intact,’ he said.

Ravelas said this could also mean households continue to save, businesses continue to invest, and banks remain in a strong position to finance growth.

For his part, Michael L. Ricafort, chief economist at the Rizal Commercial Banking Corporation (RCBC) said the 10 percent year-on-year growth for the Philippine financial system’s resources could be attributed to ‘some hedging and front-loading of purchases/imports that are funded by bank loans/credit before inflation rates for various products go up further.’

He explained that financial resources are also being pooled in advance within the financial system before borrowing costs go up further which he described as ‘a matter of prudence.’

Breakdown of total resources

BSP data showed banks accounted for the bulk, or 82.13 percent of total resources, while NBFIs held the remaining 16.86 percent share.

Resources held by banks climbed 10.85 percent to P31.29 trillion from P28.23 trillion in May 2026.

Broken down, universal and commercial banks (UKBs) continued to dominate the sector, holding 92.72 percent of total banking resources, or P29.01 trillion. This is higher by 10.72 percent from P26.20 trillion as of May 2025.

Thrift banks accounted for 4.76 percent of all resources in Philippine banks, at P1.489 trillion as of May 2026, posting a 10.95 percent increase from P1.342 trillion as of end-May 2025.

Resources of rural and cooperative banks also grew 8.10 percent to P587 billion as of May 2026, representing 1.88 percent of the banking system’s assets from P543.2 billion in the same period in 2025.

Ravelas emphasized that the fact that thrift, rural and cooperative banks also posted ‘solid gains’ suggests that ‘financial deepening is becoming more broad-based across the country.’

For the coming months, Ricafort said total resources growth could slow down amid possible higher interest rates locally and globally.

‘Also amid more cautious lending by banks to prevent further increase in bad loans amid slower global and local economy amid higher inflation and interest rates largely brought about by the adverse effects of the war in Middle East,’ added the RCBC’s chief economist.

Preliminary data from the central bank showed that the gross non-performing loans (NPLs) ratio climbed to 3.44 percent in May-the highest in nine months or since August 2025.

Data showed that the peso value of bad loans climbed to a new record high of P601.41 billion, which is 14.02 percent higher than the P527.449 billion recorded in end-May 2025.

BSP data also revealed that the ratio which measures the banks’ capacity to absorb losses from bad loans plunged to 88.92 percent-the lowest level in over four years or since March 2022.