Peso, dollar deposits up 6.4% to P5.1T

MANILA, Philippines - More Filipinos continued to save in the formal banking sector despite the closure of several problematic rural and thrift banks as total peso and foreign currency-denominated deposits went up by 6.4 percent in the first nine months of last year, the state-run Philippine Deposit Insurance Corp. (PDIC) reported yesterday.

The Quarterly Report on Deposits released by the PDIC showed that total deposits in the banking system reached P5.1 trillion as of end-September last year of P307.6 billion higher than the previous year’s P4.8 trillion.

The report showed that savings deposits posted a double-digit growth of 10.1 percent to P2.43 billion, cornering a 47.6 percent share of the total peso and foreign currency denominated deposits from January to September last year.

Data also revealed that the combined levels of time and long-term negotiable certificates of deposits (LTNCDs)went down slightly by 1.3 percent to P1.7 trillion followed by demand deposits grew 12.1 percent to P992 billion.

PDIC reported that deposits of individuals declined by 1.9 percent to P2.79 trillion as of end-September last year from P2.84 billion a year ago.

On the other hand, the share of private corporations in the total peso and foreign currency denominated deposits improved to 30.2 percent from 27.2 percent while that of the government increased to 11.4 percent from 10.2 percent due to the underspending by the Aquino administration.

The government-owned deposit insurer said peso and foreign currency denominated deposits in universal and commercial banks went up by 7.2 percent to P4.5 trillion last year from P4.2 trillion a year ago.

Last year, PDIC took over 29 banks as more problematic banks were ordered closed by the Bangko Sentral ng Pilipinas (BSP). The number of banks taken over by PDIC last year was four more than the 25 banks placed under the receivership of the government-owned deposit insurer in 2010.