‘Funnel financial system resources to investments’ By Andrea E. San Juan
W
HILE 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 & Co. explained that the 10-percent growth in the Philippine financial system’s total resources to a
WORLD » A7
US STRIKES IRAN’S REVOLUTIONARY GUARD OVER ATTACK THAT KILLED TROOPS IN JORDAN
ROTARY CLUB OF MANILA JOURNALISM AWARDS
2006 National Newspaper of the Year 2011 National Newspaper of the Year 2013 Business Newspaper of the Year 2017 Business Newspaper of the Year 2019 Business Newspaper of the Year 2021 Pro Patria Award PHILIPPINE STATISTICS AUTHORITY 2018 Data Champion
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 endApril 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. See “Financial,” A2
BusinessMirror A broader look at today’s business
EJAP JOURNALISM AWARDS
BUSINESS NEWS SOURCE OF THE YEAR
(2017, 2018, 2019, 2020, 2021) DEPARTMENT OF SCIENCE AND TECHNOLOGY
2018 BANTOG MEDIA AWARDS
BIR, BOC RELYING ON H2 GROWTH TO MEET GOALS www.businessmirror.com.ph
S
n
Monday, July 20, 2026 Vol. 21 No. 279
P25.00 nationwide | 2 sections 20 pages | 7 DAYS A WEEK
US business mission sizes up projects in Manila
By Reine Juvierre S. Alberto
TRONGER economic growth in the second half will be vital for the country’s two main revenue agencies to meet their recalibrated collection targets this year, even as both remain on track in the first semester.
“We’re hoping for a higher GDP [gross domestic product] growth in the coming months because it significantly impacts VAT [valueadded tax], percentage tax and other business taxes,” Internal Revenue Commissioner Charlito Martin R. Mendoza told reporters last week. To recall, the Development Budget Coordination Committee (DBCC) lowered the Bureau of Internal Revenue’s (BIR) revenue target by P38 billion to P3.393 trillion, while increasing the Bureau of Customs’ (BOC) goal by
By Bless Aubrey Ogerio
A
P7.2 billion. Separately, Customs Commissioner Ariel F. Nepomuceno told reporters that the higher target took into account the weakening of the peso against the US dollar, expectations of economic growth and other macroeconomic factors. “But we can [reach the target],” Nepomuceno said, noting that the BOC’s extra revenues of P11.8 billion could make up for the additional P7.2 billion needed from the bureau. “There’s still a lot of room for improvement.” See “Growth,” A2
LTFRB REVIVES PICK-UP FARE SCHEME FOR TNVS PASSENGERS By Lorenz S. Marasigan
R
IDE-HAILING passengers will soon pay pick-up fees again, after the Land Transportation Franchising and Regulatory Board (LTFRB) revived a fare scheme meant to compensate drivers for the time and fuel they burn traveling to pick up their passengers. Under Memorandum Circular 2026-059, the regulator reinstated the fixed pick-up fare rates it first rolled out in December last year, capping the charges at a 5-kilometer radius from the driver’s location.
The new circular takes effect upon publication in a newspaper of general circulation. LTFRB Chairman Vigor D. Mendoza II said the revival responds to mounting complaints from Transport Network Vehicle Service (TNVS) drivers over rising operational costs, while addressing commuter grievances about unauthorized and unregulated pick-up charges. “While commuters’ welfare is a priority, part of our mandate is also to ensure that the concerns of those from the public transportation sectors are heard. In See “TNVS,” A2
GROWING AGAINST THE ODDS Magdaleno Gamuela, 78, of Candon, Ilocos Sur, sprays pesticide on his half-hectare rice farm, which he has
tended for the past five decades. His field typically produces about 60 sacks of palay each harvest, but farmers like Gamuela are confronting mounting challenges that threaten their livelihoods. The Federation of Free Farmers (FFF) has warned that the country’s rice production could decline sharply in the fourth quarter of 2026, citing a combination of excessive rice imports, soaring fertilizer costs, the lingering effects of El Niño, and inadequate irrigation systems—pressures that continue to weigh heavily on smallholder farmers and the nation’s food security. NONIE REYES
BUSINESS delegation composed of around 40 representatives from American companies in information technology, financial services, logistics and shipping visited the Philippines this month to explore investment opportunities. As Manila and Washington mark 80 years of diplomatic relations, the delegation, which included firms from the US Northeast, Midwest and West Coast, attended a recent investment briefing and strategic forum by the Philippine Economic Zone Authority (Peza) at the World Trade Center in Pasay City. The mission was organized by the Philippine Embassy in the United States (US) and the Philippine Trade and Investment Centers (PTICs) in the US. According to US Embassy Senior Commercial Counselor Paul Taylor, the Philippines remains an important economic partner for the US in Southeast Asia. “This is an important market and an important trade and investment relationship [of the US] in Southeast Asia,”Taylor said. “We know that with a partner like the Philippines, the United States can greatly impact the transparency and the ability of all of Asean to operate in a way that is going to be built on shared values and is going to head in the right direction,” he added. Also, during the forum, Peza Director General Tereso Panga presented the country’s investment environment and discussed initiatives that the government expects to support future investments, including the country’s upper middle-income classification, the Luzon Economic Corridor and the proposed artificial intelligence hub under the Pax Silica initiative. “Today is the right time to invest in the Philippines because we are at the center of emerging opportunities in trade, manufacturing, technology, and sustainable growth,” Panga said. “We in Peza are ready to roll out our red carpet to all investors and work closely with you every step of the way as you grow your business in the Philippines,” he added. Peza also noted that it continues to be cited in the US Department of State’s annual Investment Climate Statements for the Philippines, which says that the business See “Projects,” A2
PESO EXCHANGE RATES n US 61.6440 n JAPAN 0.3797 n UK 83.0899 n HK 7.8631 n CHINA 9.1040 n SINGAPORE 47.7972 n AUSTRALIA 43.1138 n EU 70.5516 n KOREA 0.0417 n SAUDI ARABIA 16.4196 Source: BSP (July 17, 2026)