MANILA, Philippines - Total assets of banks operating in the Philippines grew 9.6 percent as of end-September last year depite economic uncertainties in advanced economies led by the US as well as the debt crisis in Europe, the Bangko Sentral ng Pilipinas (BSP) reported over the weekend.
In its Q3 2011 Report on Economic and Financial Developments, the BSP reported that resources of the country’s banking industry reached P7.4 trillion as of end-September last year from P6.75 trillion as of end-September in 2010.
The BSP said universal and commercial banks accounted for the bulk or almost 90 percent of the total resources of the banking system while thrift, savings, and rural banks cornered the remaining 10 percent.
The bank regulator traced the higher resources of the country’s banking industry to the growth in currency and deposits, indicative of the public’s continued trust in the banking sector.
Statistics showed that peso-denominated savings and time deposits remained the primary sources of funds for banks, increasing 5.6 percent to P3.8 trillion in end-September last year from a year-ago level of P3.6 trillion.
“The continued growth in deposits reflected sustained depositors’ confidence in the banking system,” the BSP stated in the report.
Data showed that savings deposits registered a 13.4-percent growth and accounted for nearly half of the funding base while demand deposits expanded by 12.4 percent. Time deposits, however, retreated by 4.7 percent.
The BSP pointed out that key performance indicators showed sustained stability of the country’s banking system.
“The Philippine banking system remained resilient and robust on the back of steady asset growth, growing deposit base, ample liquidity and above standard solvency ratios,” the central bank said.
It attributed the industry’s resiliency to the sustained implementation of key financial sector reforms as well as the improving macroeconomic environment that augured well for the system.
Data released by the central bank showed that the number of banks stood at 739 in the first semester of the year or 19 banks fewer than the 758 as of end-December last year. The number of banks was also 34 less than the 773 banks that operated in the same period last year.
The BSP attributed the decline in the number of banks in the first half of the year to the exit of weak players in the banking system as well as the continued mergers and consolidation of major players.
Data showed that the number of universal and commercial banks was steady at 38 while the number of thrift banks was reduced by one bank to 72 as of end-June from 73 as of end-December last year.