MANILA — Deposits in Philippine banks grew 9.8 percent as of end-March 2026, nearly doubling the growth rate recorded before the Philippine Deposit Insurance Corp. raised its maximum deposit insurance coverage to P1 million per depositor, per bank.
The increase followed the adjustment to the maximum deposit insurance coverage (MDIC), which took effect on March 15, 2025, the PDIC said during its PDIC 101: Understanding Deposit Insurance seminar, held in partnership with the Philippine Information Agency, at the PIA Auditorium on Aug. 5.
PDIC Vice President Jose G. Villaret Jr. of the Corporate Affairs Group said deposit growth accelerated from 5.3 percent in March 2024, before the higher coverage took effect.
Deposits of more than P1 million posted the strongest growth, rising 10.3 percent as of end-March 2026 from 5.4 percent two years earlier.
Thrift and rural banks recorded the most notable gains in large deposit balances, suggesting stronger depositor confidence across the banking sector.
“The increase in deposit insurance coverage has reinforced public trust in our banking system and encouraged more people to keep their savings in banks,” Villaret said.
The PDIC also said the Philippines has one of the strongest deposit insurance systems in the Association of Southeast Asian Nations.
Based on the ratio of deposit insurance coverage to 2025 gross domestic product per capita, using World Bank data, the Philippines ranked among the top three Asean economies with a ratio of 4.2, behind Malaysia and Indonesia.
The PDIC said the ratio indicates that the country’s deposit insurance system remains aligned with regional and international standards.
The P1 million MDIC was the first increase in 16 years. The adjustment aimed to keep depositor protection responsive to inflation, align it with global best practices, and address the evolving needs of depositors.
It was also the first time the PDIC Board of Directors exercised its authority under the PDIC Charter to adjust the MDIC following amendments to the deposit insurance law in July 2022. PR
