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Trump’s 15% global tariff threatens Philippines’ export recovery — analysts

The United States government’s plan to impose a new 15% tariff on imports may dampen the Philippines’ export recovery and disrupt supply chains, according to analysts.

“Under a 15% tariff, there might be a disruption in the supply chain, because other countries might negotiate or diverge [to other markets],” Philippine Exporters Confederation, Inc. President Sergio R. Ortiz-Luis, Jr. said in a phone call.

“Unfortunately, our competitors here in the ASEAN (Association of Southeast Asian Nations) are supported by their governments, but we aren’t,” he added.

Mr. Ortiz-Luis said the Philippine government must resume negotiations with its US counterparts to ensure exports remain competitive.

Philippine Institute for Development Studies Senior Research Fellow John Paolo R. Rivera said the new tariffs could dampen export recovery, especially for electronics, garments, and agricultural sectors.

“The renewed threat of a 15% global tariff signals that protectionist risks remain and could dampen export recovery if implemented, especially for semiconductors and intermediate goods integrated into US supply chains,” he said in a Viber message.

US President Donald J. Trump said he wants to impose a new 15% duty on US imports from all countries, starting Tuesday, Reuters reported. (Read related story “Asian economies weigh impact of fresh Trump tariff, uncertainties” on S1/11).

This after the US Supreme Court struck down his previous tariff program, ruling that Mr. Trump had exceeded his authority when he imposed higher tariffs under an economic emergency law.

Government officials emphasized that the US remains an important trading and investment partner.

“We will continue to engage with (the US). A stable and predictable arrangement with the US will be very beneficial to our stakeholders,” Trade Undersecretary Allan B. Gepty said in a Viber message.

Finance Secretary Frederick D. Go earlier said that the majority of the country’s exports — like semiconductors and key agricultural goods — were already exempted before the US Supreme Court’s ruling.

The US has long been the Philippines’ biggest export market. From January to December 2025, the value of Philippine exports to the US stood at USD 13.44 billion.

“We don’t know under what authority he (Mr. Trump) will impose those tariffs, and if these will last. We will have to wait until the dust settles to properly assess the impact of his new universal tariffs,” Foundation for Economic Freedom President Calixto V. Chikiamco said in a Viber message.

Reuters reported the new US tariffs are grounded in a separate but untested law, known as Section 122, that allows tariffs up to 15% but requires congressional approval to extend them after 150 days.

Foreign Buyers Association of the Philippines President Robert M. Young said its members have been resuming talks with its US buyers.

“We have survived, for the last eight months, the US’ 19% tariff. So, I think we have to just go on with what we are doing, and we’ll try our best to just lower our price to be competitive with other ASEAN nations,” he said via telephone.

Mr. Trump in July last year slapped a 19% duty on goods from five ASEAN members — the Philippines, Cambodia, Malaysia, Thailand, and Indonesia.

“In the meantime, we are preparing already for our expansion and our additional orders. We are keeping our fingers crossed that we will be given the best deal that we can get,” Mr. Young said.

Reacting to the US Supreme Court’s decision, Mr. Young called it a “much-needed boost for Philippine industries,” noting that it may contribute to local job creation.

To further support Philippine exporters, the government should also focus on improving infrastructure and ease of doing business, he said.

The Philippines should also leverage its membership in the Regional Comprehensive Economic Partnership and strengthen ties with its ASEAN partners by positioning itself as an alternative production base, Mr. Rivera said.

“At the same time, exporters should diversify markets and upgrade value-added production to reduce vulnerability to unilateral tariff actions and global policy swings,” he added.

Mr. Chikiamco said the country’s potential inclusion in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) would help boost market access.

The CPTPP comprises Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam, and the United Kingdom. The Philippines in November last year formally applied to join the trade bloc. — Beatriz Marie D. Cruz, Reporter

Philippines might miss digital payments targets, says BSP

The Philippines might fail to reach its payments digitalization targets by 2028 as the Bangko Sentral ng Pilipinas (BSP) noted that progress has been slow amid worries over emerging cyber risks.

BSP Governor Eli M. Remolona, Jr. said digitalization efforts are ongoing, but it might take beyond 2028 before the country can meet its targets under the Philippine Development Plan.

“Well, digitalization continues. It’s a good thing,” he told Money Talks with Cathy Yang on One News on Friday.

“At the same time, it brings with it some risks. We worry a lot about cyber risks. So, even as we encourage digitalization, we’re also trying to get the banks to also make sure that they defend themselves against cyber risks.”

Asked if the country remains on track with its target, Mr. Remolona said: “To be honest… it (digitalization) has been slow. We’re on track, but maybe it will take a couple more years than we thought to get where we want to go.”

The BSP wants digital payments to make up 60%-70% of the total volume of retail payments by 2028 in line with the Philippine Development Plan.

In 2024, online payments accounted for a 57.4% share in terms of volume and 59% in value terms in the country’s total monthly retail transactions, according to the BSP’s 2024 Status of Digital Payments in the Philippines report. These are up from 52.8% and 55.3%, respectively, in 2023.

Earlier this month, BSP Deputy Governor Lyn I. Javier said social engineering, such as phishing scams, account takeover and identity theft, emerged as the top cyberthreat of the local banking system in the first half of 2025. This made up 76% of the total amount lost to financial fraud during the period.

This was followed by hacking, which accounted for 13% of the total losses, and card-not-present fraud with 8%.

The BSP deputy governor noted that the financial system’s digital shift is being challenged by more frequent, targeted and more scalable cyberthreats, and that interconnectedness has allowed more cybercriminals to penetrate the system through its vulnerabilities.

Among the BSP’s priority legislative agenda for the 20^th Congress is the Digital Payments Bill, which seeks to advance the use of digital payments in financial transactions between the National Government and the public.

This, as BSP Deputy Governor Mamerto E. Tangonan has noted that digital collections comprise only 25% of the government’s total collections.

The 20^th Congress has been working on measures aimed at modernizing the government’s payment systems.

In early February, Senator Emmanuel Joel J. Villanueva filed Senate Bill No. 1821, a measure seeking to require all government agencies and relevant entities to adopt digital payment methods for the disbursement of government funds and collection of taxes, fees, tolls, imposts and other revenues.

It is currently pending for hearing in the Senate Banks, Financial Institutions and Currencies Committee.

Enhancing the digital payments system, particularly by making cross-border payments safer and more seamless within the Southeast Asian region, is also one of the BSP’s key initiatives as part of the Philippines’ chairship in the Association of Southeast Asian Nations (ASEAN) this year.

Since last year, the central bank has formalized the ASEAN Regional Payment Connectivity program, established 26 cross-border payment linkages as of August 2025, and has been developing a multilateral remittances service for overseas workers, migrants and small businesses under Project Nexus. — Katherine K. Chan

Philippines seeks more loans from Japan this year

The Philippine government is looking to sign 11 additional loan agreements valued at JPY 371 billion (around PHP 139 billion) in a bid to fast-track infrastructure projects after a corruption scandal slowed public spending, the Department of Finance (DoF) said.

“We are targeting, this 2026, the signing of 11 additional loan agreements with a total estimated value of JPY 371 billion or roughly USD 2.4 billion,” Finance Secretary Frederick D. Go said during the 42nd PHILJEC–JPECC Joint Meeting late Thursday.

“This reflects the continued alignment between our infrastructure priorities and Japan’s support,” he said.

The government is also looking to the sign three loan agreements with the Japan International Cooperation Agency (JICA), proceeds of which will fund key projects like the Metro Manila Subway and the Central Mindanao Highway, Mr. Go said.

“Japan’s fiscal year 2025 concludes this March. The Philippines looks forward to the signing of three critical loan agreements with a total value of approximately USD 1.58 billion (around PHP 91.2 billion) to be extended by JICA,” he noted.

Earlier this month, the two countries signed the exchange of notes for a JPY 21.6-billion (PHP 8.1-billion) loan deal for the ongoing rehabilitation of the Metro Rail Transit (MRT)-Line 3.

Since the start of the Marcos administration, the Philippines and Japan have signed 12 financing deals worth JPY 910.38 billion (about PHP 341.2 billion).

Many of these projects are in its financing or construction stages, the DoF said.

“Each project reflects Japan’s reputation for quality infrastructure—durable, efficient, and future-ready. And each project reflects the Philippines’ determination to build better, faster, and smarter,” Mr Go said.

As of December last year, Japan accounted for USD 13.9 billion or 33.54% of the Philippines’ total official development assistance (ODA) portfolio.

Japan is the Philippines’ largest ODA loan provider and third-largest source of ODA grants.

The government is also looking to update the Japan-Philippines Economic Partnership Agreement (JPEPA), Mr. Go said.

The JPEPA, which took effect in December 2008, is the Philippines’ first bilateral free trade agreement (FTA).

The deal covers trade goods, rules of origin, customs procedures, investment, movement of natural persons, intellectual property, and government procurement.

Trade Secretary Ma. Cristina A. Roque earlier said she is looking to meet with her Japanese counterpart within the first quarter to discuss the JPEPA.

Japan was the Philippines’ third-largest export market and fourth-largest source of imports in 2025.

Mr. Go also noted that the country’s long-term economic fundamentals remain strong despite the weak economic growth recorded last year.

Gross domestic product (GDP) growth slowed to five-year low of 4.4% in 2025 after a corruption scandal weighed on public spending.

Despite this, the Finance chief noted that Philippine GDP growth is well-above the global growth average of 2.9%.

“If you look at our long-term growth trends, we will go back up to the 5% plus this year,” he said.

To attract more investors, Mr. Go said the government is looking at implementing reforms to improve the ease of doing business, boost public-private partnerships, and create a predictable and competitive investment environment. — Beatriz Marie D. Cruz, Reporter

Gov’t raises PHP 235B in new money from FXTNs

The government has raised PHP 235 billion in fresh funds from its offering of new fixed rate Treasury notes (FXTNs), closing the public offer period a day after the rate-setting auction due to strong demand.

“Apart from supporting the National Government’s financing requirements, this 10-year FXTN issuance underscores our commitment to establishing liquid benchmark securities that strengthen secondary market activity,” National Treasurer Sharon P. Almanza said in a statement on Thursday.

“The pricing of the FXTN, which came in close to the 10-year Bloomberg Valuation (BVAL) rate, reflects our disciplined and prudent approach to fiscal management.”

The BTr’s offer period was cut short from the original three-day window of Feb. 18 to 20 after reaching the funding target.

The government had raised an additional PHP 127.93 billion from the tap facility it opened on Wednesday from the PHP 107.07 billion earlier raised from the rate-setting auction.

“Please be informed that the BTr will no longer accept bids for the new money component of the FXTN 10-74 amidst the strong demand received during the first day of the public offer period,” the Treasury said in a separate memo.

Total tenders at the tap facility reached PHP 135.8 billion, underscoring enduring robust demand as the offering was timed a day ahead of the anticipated policy rate cut by the Bangko Sentral ng Pilipinas (BSP).

The BSP on Thursday lowered its benchmark policy rate by 25 basis points (bps) to 4.25% as widely expected.

At the rate-setting auction, total tenders for the paper reached PHP 328.467 billion. The new Treasury bonds (T-bonds) fetched a coupon rate of 5.925%, resulting in an average rate of 5.893%. Accepted bid yields ranged from 5.75% to 5.928%.

In April last year, the government raised PHP 300 billion via new 10-year benchmark notes, above the PHP 30-billion program, with PHP 135 billion initially raised from the rate-setting auction.

While the sale of the FXTN 10-74 has been concluded, the BTr kept the exchange program open for holders of securities maturing on April 8, Sept. 7, Sept. 20, Oct. 20, and Jan. 4, 2027.

The exchange program will be open until Feb. 20 unless ended earlier by the BTr.

“Total volume awarded is a bit small, likely due to the offering being closed early. Around PHP 20 billion more could be raised from the exchange program,” a trader said in a text message.

Another trader said in a text message that the total amount raised from the FXTN offer, including the exchange program, could be close to PHP 300 billion.

“(The) result proved there is appetite for duration, not only because of policy rate forecast, but more on the negative growth outlook which investors really see from the ground,” the trader said.

On the other hand, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message that the total amount raised is unlikely to breach PHP 300 billion.

Ms. Almanza previously said the BTr is aiming to raise at least PHP 200 billion from the issuance but noted the total will also depend on the demand from the exchange program.

The government aims to raise PHP 308 billion from the domestic market this month, or PHP 108 billion via T-bills and up to PHP 200 billion through T-bonds.

The government borrows from local and foreign sources to help fund its budget deficit, which is capped at PHP 1.647 trillion or 5.3% of gross domestic product this year. — Aaron Michael C. Sy, Reporter

Gov’t raises PHP 107 billion from FXTNs

The Government on Wednesday raised an initial PHP 107.072 billion from its second offering of new fixed-rate Treasury notes (FXTNs) that target institutional investors.

The amount raised for the 10-year papers was more than three times the initial PHP 30-billion target as tenders reached PHP 328.467 billion.

The new Treasury bonds (T-bonds) fetched a coupon rate of 5.925%, producing an average rate of 5.893%, results of the rate-setting auction posted on the Treasury’s website showed.

Accepted bid yields ranged from 5.75% to 5.928%.

The coupon rate was 5 basis points (bps) above the 5.875% seen for the same bond series but 0.9 bp lower than the 5.934% seen for the 10-year notes based on PHP Bloomberg Valuation Service Reference Rates data as of Feb. 18 published on the Philippine Dealing System’s website before the auction.

The public offer period as well as the exchange offer for the holders of bonds maturing over the next year will end on Feb. 20. The notes are scheduled to be issued on Feb. 23.

In April last year, the government raised PHP 300 billion via new 10-year benchmark notes, well above the PHP 30-billion program. It had initially raised PHP 135 billion from the rate-setting auction.

National Treasurer Sharon P. Almanza told reporters after the auction that they are aiming to raise at least P200 billion from the issuance but noted the total will also depend on the demand from the exchange program.

The FXTN offering includes an exchange program for holders of securities maturing on April 8, Sept. 7, Sept. 20, Oct. 20, and Jan. 4, 2027.

Ms. Almanza said the coupon rate fetched by the notes was a “fair rate” despite investors asking for a higher yield ahead of the central bank’s policy meeting on Thursday.

“The demand for the 5.95% was higher, the concentration of bids was there…. And the main thing is the expectation that rates will still go down,” she said.

“If we awarded at 5.95%, we don’t need an offer period, since that was PHP 200 billion already.”

All 16 analysts in a BusinessWorld poll conducted last week expect the Monetary Board to deliver a sixth straight 25-bp cut at its first meeting for the year on Thursday. If realized, this will bring the policy rate to 4.25%.

The Bangko Sentral ng Pilipinas has lowered benchmark borrowing costs by a cumulative 200 bps since its easing cycle began in August 2024.

Ms. Almanza said that the strong liquidity in the country’s financial system also drove demand for the offering following the maturity of a Treasury bond on Feb. 16.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort also said in a Viber message that the PHP 232.8 billion in liquidity injected into the financial system due to the maturity of seven-year bonds on Feb. 13 added to the demand for fresh notes.

The offering of fresh fixed-rate Treasury notes is part of the Bureau of the Treasury’s (BTr) consolidation of issuances, Ms. Almanza said.

“We don’t want to introduce new ISIN (International Securities Identification Number) [bonds] so that the yield curve is not fragmented. There are already too much active ISIN series [bonds], so we’re retiring [them] and then we’re only introducing one or two [FXTN],” she said.

For this year, she said they will only issue FXTN once.

The awarded coupon rate was at the lower end of market expectations, a trader likewise said in a text message.

“Average yield and coupon are lower due to the continuous downward trend of yields this past week or so. Demand was incredibly high, leading to higher likelihood that the BTr will surpass the PHP 200-billion target.”

Dollar bonds

Meanwhile, Ms. Almanza said the government could tap the offshore debt market in the second half of the year to raise the remaining USD 2.5 billion from the government’s external borrowing plan.

“We have a remaining USD 2.5 billion. So, we’re monitoring US dollars because that’s the cheapest. But timing wise, we did just issue (global bonds in January).”

In January, the government raised PHP 2.75 billion from a triple-tranche dollar-denominated bond offering of 5.5-, 10-, and 25-year notes.

Asked if the government could issue offshore bonds in the second half, Ms. Almanza said: “Most probably. We’re also monitoring yen and euro.”

The BTr is also working with the Privatization and Management Office to identify assets the government could finance that will fall into the Sukuk category for an Islamic issuance this year.

The BTr first issued Sukuk bonds in December 2023, raising USD 1 billion from the sale of 5.5-year Sukuk bonds.

Sukuk or Islamic bonds are certificates that represent a proportional undivided ownership right in tangible assets, or a pool of tangible assets. These assets could be in a specific project or investment activity that is Shari’ah-compliant.

The markup takes the place of interest, which is illegal in Islamic law. Murabaha is not an interest-bearing loan but is an acceptable form of credit sale under Islamic law. A Sukuk al-Murabaha certificate cannot be traded on the secondary market.

Unlike usual bonds, Sukuk bond issuances must adhere to Islamic principles and must be structured to prohibit elements such interest, uncertainty and investments in businesses that deal with prohibited goods or services.

The government aims to raise PHP 308 billion from the domestic market this month or PHP 108 billion via Treasury bills and up to PHP 200 billion through T-bonds.

DoE to launch auction for coal areas on Feb. 27

The Department of Energy (DoE) is set to open a bid round on Feb. 27 for coal areas with verified reserves, including the area operated by the country’s largest coal miner.

In a statement on Wednesday, the DoE said it will hold a bidding process dedicated to offering pre-determined areas for coal development and production, as part of efforts to support broader energy security.

Under the bid round, three coal areas will be offered covering 18 coal blocks. These include 10 blocks in Semirara Island in Caluya, Antique; five blocks across the municipalities of Benito Soliven, Naguilian, Cauayan in Isabela; and three blocks spanning the municipalities of Amulung and Iguig in Cagayan province.

The auction will include the blocks covered under the coal operating contract that is currently held by Consunji-led Semirara Mining and Power Corp., the largest coal producer in the Philippines.

The government plans to open bidding for the contract, which ends next year, following the legal opinion that says it cannot be renewed.

From the day of the launch, interested parties will have 60 calendar days to submit their application documents. Opening of applications will be held on the same day as the deadline.

A pre-submission conference will be held 20 days after the launch to accommodate bidders’ inquiries and clarify requirements.

The bid round for pre-determined areas is a competitive process where identified resource areas are offered for development and production under a transparent evaluation and award mechanism.

The DoE said the auction aims to ensure “the orderly and responsible development and production of indigenous coal resources, while maintaining strict safeguards for public safety, environmental protection, and host-community welfare.”

The awarding of the contracts will be governed by the recently issued rules, which introduced a new type of contract that will accelerate the development of confirmed coal deposits.

Energy Secretary Sharon S. Garin said the government aims to “uphold the rule of law while safeguarding our indigenous energy resources.”

“Any future contract or continuation of operations must strictly comply with constitutional limits and demonstrably protect both the national interest and our host communities,” she said.

Asked for comment, Michael T. Toledo, chairman and president of Chamber of Mines of the Philippines, said that structured bid rounds show policy consistency, which helps build investor confidence, especially for long-term projects.

“Investors value stable rules, transparency, and responsible standards. Strengthening these benefits not only coal but the wider mining and natural resource sectors,” Mr. Toledo told BusinessWorld.

While coal dominates the Philippines’ power generation, it imports more than 90% of its requirements.

In 2024, the country imported 39.87 million metric tons of coal, up 12.2% from the previous year, data from the DoE as of April 2025 showed.

The country, however, is trying to move away from fossil fuels by aiming to increase the utilization of renewable energy to reduce exposure to volatile global prices and reduce carbon emissions.

“While the energy transition is underway, indigenous resources such as coal still play a role in ensuring reliable power supply and reducing dependence on imports,” Mr. Toledo said.

“Strategic development must therefore be guided by strong governance, environmental standards, and clear long-term policy direction,” he added. — Sheldeen Joy Talavera, Reporter

Peso soars to near five-month high as US-Iran talks soothe sentiment

The peso jumped to a near five-month high against the dollar on Wednesday, supported by easing geopolitical concerns amid ongoing negotiations between the United States and Iran.

The local unit strengthened by 12.5 centavos to close at PHP 57.861 versus the greenback from its PHP 57.986 finish on Monday, data from the Bankers Association of the Philippines showed.

This was the peso’s strongest finish in close to five months or since it ended at PHP 57.461 on Sept. 24, 2025.

The local currency opened Wednesday’s trading session a tad stronger at PHP 57.94 against the dollar. Its weakest showing was at PHP 58.04, while its intraday high was at PHP 57.84 against the greenback.

Dollars traded rose to USD 1.046 billion from USD 896.5 million on Monday.

The peso was supported by easing global crude oil prices amid continued negotiations between the US and Iran, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Oil prices steadied in Asian trade on Wednesday after falling about 2% in the previous session as investors assessed progress in US-Iran talks but remained cautious about the prospects of a final deal that could ease supply concerns, Reuters reported.

Brent futures rose 15 cents or 0.22% to USD 67.57 a barrel by 0737 GMT, while US West Texas Intermediate crude was up 12 cents or 0.19% at USD 62.45. Both are around two-week lows.

Iran and the US reached an understanding on Tuesday on main “guiding principles” in talks aimed at resolving their longstanding nuclear dispute, but that does not mean a deal is imminent, Iranian Foreign Minister Abbas Araqchi said.

But the dollar was broadly higher on Wednesday as geopolitical risks kept markets on edge and investors awaited minutes from the US Federal Reserve for signals on future rate cuts.

With many markets in Asia closed for Lunar New Year holidays, investors were looking ahead to the Fed’s readout of its last meeting and other key US economic data for trading catalysts.

The dollar index, which measures the greenback against a basket of currencies, rose 0.1% to 97.23 after a two-day advance.

The Fed’s Open Market Committee issues minutes from its January meeting later on Wednesday, while the Commerce department will release durable goods data for December and on Friday will issue its first estimate for fourth-quarter gross domestic product. Chicago Fed President Austan Goolsbee said on Tuesday that the central bank could approve “several more” rate cuts this year, depending on inflation.

“The peso appreciated further to recent highs amid expectations of a downbeat US durable goods report overnight,” a trader said in an e-mail.

For Thursday, the trader said the peso could weaken due to potentially hawkish statements in the Fed minutes and uncertainty ahead of the Bangko Sentral ng Pilipinas’ policy meeting. Both the trader and Mr. Ricafort see the peso moving between PHP 57.75 and PHP 58 per dollar. — Aaron Michael C. Sy with Reuters

Bargain hunting lifts PSEi before rate decision

Stocks closed higher on Wednesday as investors bought cheap stocks after the market’s three-day slide and before the Bangko Sentral ng Pilipinas’ (BSP) policy meeting, where a rate cut is widely expected.

The benchmark Philippine Stock Exchange index (PSEi) rose by 0.41% or 26.22 points to close at 6,394.77, while the broader all shares index went up by 0.41% or 14.76 points to end at 3,542.05.

“The thinly-traded Philippine market snapped a three-day losing skid as investors positioned ahead of tomorrow’s Monetary Board decision, at which the BSP is expected to deliver another 25-bp (basis point) rate cut, driven by lackluster fourth-quarter 2025 economic growth and anchored by the cushioning effect of the depreciating dollar,” AP Securities, Inc. said in a market note.

“The PSEi ended higher as bargain hunters stepped in following three consecutive days of decline. Investors appeared to position themselves ahead of the BSP policy rate decision tomorrow,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan likewise said in a Viber message. “The rebound was driven by selective buying in key index names amid cautious optimism over the central bank’s next move.”

All 16 analysts in a BusinessWorld poll expect the Monetary Board to cut benchmark borrowing costs by 25 bps for a sixth consecutive meeting at Thursday’s review to bring the policy rate to 4.25%.

The BSP has lowered benchmark borrowing costs by 200 bps since its easing cycle began in August 2024.

“The positive cues from Wall Street and the strengthening of the peso also helped in the climb,” Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco added in a Viber message.

The peso jumped by 12.5 centavos to close at PHP 57.861 versus the dollar on Wednesday, data from the Bankers Association of the Philippines showed. This was the currency’s best close since September last year.

Most sectoral indices closed in the green on Wednesday. Services rose by 1.64% or 43.60 points to 2,691.96; property increased by 0.91% or 19.87 points to 2,191.28; mining and oil went up by 0.35% or 63.98 points to 17,918.75; financials climbed by 0.17% or 3.64 points to 2,141.23; and holding firms advanced by 0.07% or 3.54 points to 5,055.15.

Meanwhile, industrials fell by 0.71% or 65.32 points to 9,023.44.

“DigiPlus Interactive Corp. was the day’s index leader, climbing 4.8% to PHP 14.42. Semirara Mining and Power Corp. remained as the main index laggard, plunging 13.6% to PHP 22.55,” Mr. Tantiangco said.

Advancers outnumbered decliners, 101 to 93, while 63 names closed unchanged.

Value turnover dropped to PHP 5.19 billion on Wednesday with 943.82 million shares traded from the PHP 5.28 billion with 1.04 billion issues that changed hands on Monday.

Net foreign buying was at PHP 467.67 million, a turnaround from the PHP 90.80 million in net selling in the previous session. — Alexandria Grace C. Magno

Financial system resources hit PHP 36.9T in 2025

The total resources of the Philippine financial system climbed by 8.08% year on year to nearly PHP 37 trillion at the end of 2025, preliminary central bank data showed.

Resources held by banks and nonbank financial institutions (NBFIs) rose to PHP36.932 trillion last year from PHP34.172 trillion in 2024, according to data released by the Bangko Sentral ng Pilipinas (BSP).

These resources include funds and assets such as deposits, capital, and bonds or debt securities.

Banks’ resources topped PHP30 trillion in 2025, as it jumped by 8.67% to PHP30.706 trillion from PHP28.256 trillion in 2024.

Of the total, universal and commercial banks had the bulk of the sector’s resources at PHP28.572 trillion, up 8.07% from PHP26.438 trillion in the previous year.

Thrift banks’ resources increased by 24.43% to PHP1.456 trillion at end-2025 from PHP 1.17 trillion at end-2024.

Digital banks’ resources also surged by an annual 41.98% to PHP 172.5 billion at end-2025 from PHP 121.5 billion previously.

Latest available data also showed that resources of rural and cooperative banks stood at PHP 505.9 billion as of end-September 2025. This was 4.02% lower than the PHP 527.1 billion seen for the entire 2024.

On the other hand, nonbanks had PHP 6.226 trillion worth of resources in the first nine months of 2025, exceeding 2024’s total of PHP 5.916 trillion by 5.25%.

There was no available end-2025 data for rural banks and nonbanks.

Nonbanks include investment houses, finance companies, security dealers, pawnshops, and lending companies.

Institutions such as nonstock savings and loan associations, credit card companies, private insurance firms, the Social Security System, and the Government Service Insurance System are also considered NBFIs.

Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said the sustained growth in bank lending and deposits as well as the industry’s continued profitability boosted the full-year financial resources.

“This is nearly twice the economic growth of 4.4% in 2025 (and was) again largely due to the continued double-digit growth in bank loans, sustained growth in bank deposits, continued net income growth of banks, which are among the most profitable industries in the country consistently for many years,” he said in a Viber message.

Since May 2024, bank lending has grown at a double-digit pace monthly. The streak was only broken in December last year, when banks’ loan growth eased to a 22-month low of 9.2%.

Meanwhile, the latest available BSP data showed that bank deposits rose by 7.58% year on year to PHP 21.066 trillion as of September from PHP 19.581 trillion previously.

Recent policy easing also allowed banks to benefit from higher trading gains and investment earnings, Mr. Ricafort noted.

Since August 2024, the central bank has so far reduced key borrowing costs by a total of 200 basis points (bps) to its lowest in over three years at 4.5%.

On the other hand, the US Federal Reserve’s benchmark rate currently stands at 3.5%-3.75% range following a cumulative 175 bps in cuts since September 2024.

Jonathan L. Ravelas, a senior adviser at Reyes Tacandong & Co., also noted that the rise of banks and nonbanks’ financial resources last year “reflected resilience and confidence in the system.”

Mr. Ravelas said resources’ growth this year will be driven by banks’ lending to priority sectors such as infrastructure and consumption as well as the impact of capital market activity, trust funds and insurance on NBFIs.

“In 2026, growth will likely be more measured but still solid, with banks focusing on targeted lending to priority sectors like infrastructure and consumption, while nonbanks benefit from capital market activity, trust funds, and insurance,” he said via Viber. “The story this year shifts from rapid accumulation to disciplined, higher‑quality growth.”

Meanwhile, Mr. Ricafort said further monetary policy easing would “lead to higher trading gains and other investment gains, as well as greater demand for loans, that would again be the major growth drivers for total assets and resources of the banking system and the overall financial system.”

The Monetary Board is widely expected to trim the key policy rate by another 25 bps at its meeting on Thursday to bring it to 4.25%, based on a BusinessWorld poll of 16 analysts. — Katherine K. Chan, Reporter

BSP fine-tunes monetary operations

The Bangko Sentral ng Pilipinas (BSP) has limited its term deposit facility (TDF) and short-term securities to a single tenor each as it aims to enhance monetary policy transmission and push banks to better manage their liquidity.

“When we consulted with banks they (said they) can manage their liquidity positions even with fewer facilities,” BSP Deputy Governor Zeno Ronald R. Abenoja told BusinessWorld on the sidelines of an event last week.

“So, it’s really to improve the transmission of monetary policy and then also encourage banks to manage their liquidity on their own.”

Mr. Abenoja assured that the central bank’s decision to narrow the offerings of its facilities to single tenors was merely “fine-tuning” and not prompted by any market disruption.

“The banks knew about it well in advance. So, we discussed it beforehand,” he said. “So, (it was just) tweaking (and) small, fine-tuning. There aren’t any disruptions.”

The central bank uses facilities such as the overnight reverse repurchase (RRP) facility, TDF and BSP bills to mop up excess liquidity in the financial system and better guide market rates towards the target RRP rate.

The BSP first opened weekly auctions for the TDF in 2016 and the short-term securities in 2020.

For the TDF, it initially offered the seven-day and 28-day tenors and later added the 14-day papers in February 2018.

However, the BSP has not auctioned off the 28-day term deposits for over five years to give way to its weekly offerings of securities with the same tenor.

Meanwhile, the central bank began offering only a 28-day tenor for the BSP bills before adding the 56-day bill in 2023.

In November last year, the BSP stopped issuing the 14-day TDF, leaving only a single seven-day tenor. Since then, it has also limited its auction for the BSP bills to just the 28-day papers.

Mr. Abenoja told this paper that the central bank initially opted to decrease its monetary operations amid the anticipated high demand for liquidity during the holiday season.

In its monetary policy report (MPR) for December 2025, the BSP also said this was done to “rationalize the number of liquidity facilities and concentrate on tenors that would enhance monetary policy transmission.”

As of mid-November 2025, the BSP’s monetary operations have absorbed PHP 1.5 trillion in liquidity from the market. Of this, 42.4% was siphoned off through BSP securities, 34.6% from overnight reverse repurchase agreements, 17.6% via the overnight deposit facility, and 5.4% through the term deposit facility.

BSP Governor Eli M. Remolona, Jr. earlier said they are gradually shifting away from the issuance of short-term papers to manage liquidity as they want to boost activity in the money market.

Mr. Abenoja also noted that short-term rates are now near the central bank’s target policy rate, indicating that the existing instruments are effectively transmitting monetary policy.

“So, as long as you see money market rates — for example, those from BVAL (Bloomberg Valuation Service) or IBCL (Interbank Call Loan) — remain close to the policy rates with corresponding term premia, if it’s longer than the overnight (rate), then the scale of the operation, the volume and the instruments being used could be appropriate,” he said.

Still, the BSP deputy governor added that they could auction off the longer tenors again if they find gaps in monetary policy transmission.

According to the latest MPR, the interest rates in both facilities had fully reflected a total of 175 basis points (bps) in rate cuts.

The BSP has so far delivered a cumulative 200-bp rate cuts since it began its easing cycle in August 2024, which brought the benchmark policy rate to an over three-year low of 4.5%.

The Monetary Board will have its first policy meeting this year on Thursday. A BusinessWorld poll of 16 analysts showed that they are expected to trim the policy rate anew by 25 bps to 4.25%. — Katherine K. Chan, Reporter

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2024 Mid-Year Economic Briefing: Navigating the Easing Cycle

Investing with Love: A Mother’s Guide to Putting Money to Work

Investor Series: An Introduction to Estate Planning

Policy Rate Updates: BSP outlook — cloudy with a chance of rate cut

January Economic Update: Growth slows, prices rise

Inflation Update: Up, up, and away?

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