The Philippine Deposit Insurance Corp. (PDIC) reported a 14- percent expansion in deposits in 2016 amounting to P10.5 trillion, from only P9.2 trillion in the previous year.
Based on PDIC data, the aggregate number of deposit accounts also expanded by 6 percent to 54 million, from the 51 million in 2015.
“The robust and sustained growth of deposits both in amount and number of accounts reflect heightened depositor confidence in the stability of the banking system,” PDIC President Roberto B. Tan said.
According to Tan, deposit accounts with balances higher than P100,000 grew by a faster rate of 8.7 percent compared with accounts with deposits of P100,000 or lower, which grew by only 5.6 percent.
In terms of share to total number of deposits, accounts with balances up to P100,000 comprised 89.3 percent for the period.
“The increase in the number of deposit accounts shows how depositors continue to trust the banks to safeguard their hard-earned savings. This growth augurs well to the depositing public’s awareness of the importance of saving and, overall, speaks well of more funds being made available to the system for investments and production,” Tan said.
Some 52 million, or 96.4 percent, of deposit accounts were fully covered by deposit insurance, translating to total estimated insured deposits of P2.3 trillion, or 21.5 percent, of total deposits as of end-2016.
The growth in deposits was also attributed to the expansion of branch networks in all regions nationwide, with branches reaching 10,952 in 2016, from the 10,574 in 2015.
The Philippine banking sector was also opened to new players in light of the law passed in 2014 allowing full entry of foreign banks in the country.
“The continuing growth of the banking system poses both challenges and opportunities for financial inclusion. The presence of unbanked municipalities underscores the importance of continuous efforts to promote financial inclusion to ensure that rural and far-flung communities have access to much-needed formal financial services,” Tan said.
PDIC provides deposit insurance up to maximum of P500,000 per depositor per bank.