DATA from the Philippine Deposit Insurance Corporation (PDIC) showed that total deposits in the Philippine banking system grew by 8.8 percent to P12.7 trillion as of December 31, 2018 from P11.7 trillion in the previous year.
Total number of deposit accounts in 2018 posted a double-digit growth of 10.1 percent to 62.9 million from 57.1 million accounts as of end-2017.
Of the total number of accounts, 60.5 million or 96.3 percent are fully insured by PDIC or have balances that are within the maximum deposit insurance coverage of P500,000.
“The growth of deposits, both in terms of amount and number of accounts, reflects increased depositor confidence in the banking system. It is imperative to sustain the trust of the depositing public by ensuring that PDIC is able to serve through adequate insurance coverage on deposits and effective regulation for sound deposit practices and operations of banks,” PDIC President Roberto B. Tan said.
In terms of type of deposit, savings deposits and time deposits jointly accounted for the bulk of total domestic deposits at 75.2 percent. Savings deposits amounted to P6 trillion, while time deposits totaled P3.6 trillion as of end-2018.
However, in terms of growth rate, time deposits and long-term negotiable certificates of deposits (LTNCD) grew the fastest at a double-digit rate of 10.3 percent, followed by demand deposits and negotiable order of withdrawal (NOW) accounts at 8.3 percent, and savings deposits at 8.1 percent.
In terms of type of depositors, individuals and private corporations made up for 78.8 percent of the total domestic deposits in the Philippine banking system, while government deposits represented 13.6 percent. Deposits by banks, trust departments, and non-residents accounted for the balance.
Peso accounts amounting to P10.6 trillion were recorded at 83.5 percent of the total domestic deposits, higher by 9.2 percent from the P9.8 trillion posted as of end-2017.
Meanwhile, foreign currency deposits amounting to P2.1 trillion comprised 16.5 percent of the total domestic deposits, higher by 7.2 percent than the P2 trillion foreign currency deposits recorded as of end-2017.
As the state deposit insurer, PDIC is mandated to safeguard the interests of the depositing public by way of providing insurance coverage on all types of deposits and help maintain a sound and stable banking system.
PDIC likewise continues to promote depositor education, financial literacy and public awareness through its Be a Wise Saver campaign, which it conducts nationwide among students, private and public sector personnel, and members of the financially vulnerable sectors. (PR)