Other Financial Corporations Survey Expands in End-June 2019

Based on preliminary data from the other financial corporations survey (OFCS), the net foreign assets (NFA) of other financial corporations (OFCs) in Q2 2019 increased by 2.2 percent to P83.7 billion from P81.9 billion in the previous quarter.1 The improvement in the sector's NFA balance was due to the larger contraction of OFCs' liabilities to nonresidents compared to the contraction of claims on nonresidents.

Domestic claims of the OFCs amounted to P6,117.8 billion in Q2 2019, higher by 2.8 percent compared to the P5,953 billion level in the previous quarter as claims on other sectors and depository corporations (DCs), and net claims on Central Government (CG) all increased during the period.

Claims on other sectors expanded to P3,075.0 billion in Q2 2019 from P3,017.4 billion in the previous quarter on account of the sector's higher holding of shares and other equity issued by other nonfinancial corporations and outstanding loans extended to the household sector.2 Claims of OFCs on DCs in Q2 2019 likewise rose to P1,613.2 billion from P1,563.3 billion in Q1 2019 due to higher holdings of securities other than shares, and currency and deposits. Meanwhile, net claims on CG increased to P1,429.6 billion in Q2 2019 from P1,372.3 billion in the last quarter. This was brought about by the 3.8 percent rise in the OFCs' holdings of debt securities issued by the CG complemented by the 11.3 percent decline in the sector's liabilities to CG during the quarter.

Other liabilities of OFCs expanded to P6,201.5 billion (by 2.8 percent) from the P6,034.9 billion in Q1 2019, although at a slower rate compared to the 4 percentincrease in the previous quarter. Shares and other equity, and insurance technical reserves continue to be the main sources of funds of the sector.3

Source: Singapore Police Force