Filipinos saving more: Bank deposits swell 8% to P6.9 T

MANILA, Philippines - Bank deposits rose 7.8 percent in the first nine months of the year as Filipinos are saving more, the Bangko Sentral ng Pilipinas (BSP) reported over the weekend.

Data released by the central bank showed total deposits of banks amounted to P6.9 trillion as of end-September this year or P500 billion higher compared to P6.4 trillion in end-September last year.

The BSP said savings deposits increased 9.3 percent while demand deposits jumped 15.3 percent in end-September.

Likewise, foreign currency deposits owned by residents surged 13.7 percent to P1.5 trillion year-on-year.

On the other hand, time deposits declined 1.4 percent in the first nine months of the year.

“Savings and time deposits remained the primary sources of funds for the banking system,” the BSP added.

According to the central bank, the growth in deposits in the third quarter slightly weakened compared with the 8.2 percent growth posted in the second quarter.

Results of the Consumer Expectations Survey (CES) for the fourth quarter 2015 showed more Filipino households receiving remittances from their loved ones abroad are saving and investing amid the heightened financial literacy programs being undertaken by the BSP.

The survey results showed an increase in the number of overseas Filipino workers’ households allocating remittances for savings to 41.4 percent from 38.2 percent in the previous quarter.

Likewise, the number of households allocated remittances for investments improved to 6.6 percent in the fourth quarter of the year from 6.2 percent in the third quarter.

BSP Deputy Governor Diwa Guinigundo earlier said financial literacy seminars and lectures being conducted by the BSP are yielding positive results as seen in the results of the survey.

“Among others our public information campaign focused on OFWs has been yielding positive results in terms of investments and savings. They are more aware of the need to save and invest in case they decide to come back in the Philippines,” he said.

He pointed out the number of households using remittances for savings has increased to 41.4 percent in the fourth quarter of the year or almost six times the 7.2 percent when the CES was launched in the first quarter of 2007.

On the other hand, he added the number of households using remittances for investments rose to 6.6 percent or almost three times the 2.3 percent level when the survey was launched eight years ago.

Latest data from the BSP showed cash sent home by overseas Filipinos went up 3.7 percent to $20.64 billion in the first 10 months of the year from $19.91 billion in the same period last year on the back of sustained demand for skilled Filipino manpower overseas.

The BSP has lowered the growth target for cash remittances from overseas Filipinos to four percent instead of five percent this year.