Non-Bank Financial Institutions Regulatory Authority (NBFIRA) Chief Executive Officer (CEO), Oduetse Motshidisi says the non-bank financial intuitions have shown resilience and even growth during the pandemic.
Speaking at the availing of the NBFIRA 2021 Annual Report on Tuesday, Motshidisi declared, “As a sign of resilience, the regulated entities increased in number from 764 to 786 between 2019 and 2020.”
In addition, he revealed total sector assets were P129 billion in 2020, a growth of 2.5 percent compared to the prior year, albeit lower than the the 4 percent growth in 2018.
“With those numbers, the NBFI sector retained the dominant share of nearly 54 percent of assets in the domestic financial services sector,” he said.
According to Motshidisi, retirement funds assets remain the sector’s dominant player, boasting a market share of more than 70 percent within the NBFI sector.
The NBFIs sector’s profit before tax increased from P1.7 billion in 2019 to P2 billion in 2020.
An increase in profits of the Insurance and Capital Markets industries dominated the profitability trend of the sector.
Meanwhile, Motshidisi said after the elapse of the Authority’s strategic plan which ran from 2016 to this year, NBFIRA is now implementing a new corporate strategy that will run until 2026.
“Since April 2021, the Authority adopted and is implementing a refreshed five-year strategy that continues to focus on strengthening capacity to execute the mandate through a preemptive and proactive risk-based supervisory approach to identify and mitigate emerging financial stability risks,” he said.
Some of the key themes of the strategy include a robust and modern regulatory framework; strong consumer protection; and enhanced operational efficiency among others.
“Despite the challenges we, together with the sector, faced, the Regulatory Authority implemented the strategy without sacrificing any of the objectives and initiatives.”
To achieve this, he said the Authority increased its digital capabilities to respond to the stakeholders’ needs and to overcome the working challenges brought by the pandemic.