Bank deposits hit P7 T

MANILA, Philippines - Bank deposits hit the P7 trillion mark as of end-November last year as more Filipinos are now saving for the future, data released by the Bangko Sentral ng Pilipinas (BSP) showed.

Total deposits of banks increased by P500 billion to P7 trillion in the first 11 months of last year from P6.5 trillion in the same period in 2014.

The BSP said savings deposits recorded a double-digit 10.4 percent growth, while demand deposits jumped 15 percent in end-November last year.

Likewise, foreign currency deposits owned by residents surged 12.7 percent to P1.5 trillion year-on-year.

On the other hand, time deposits declined marginally by one percent in the first 11 months of last year.

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

Results of the Consumer Expectations Survey (CES) for the fourth quarter 2015 showed more Filipino households that rely on cash from overseas workers are saving and investing amid the heightened financial literacy programs being undertaken by the BSP.

Likewise, the number of households which allocated part of their remittances for investments improved to 6.6 percent in the fourth quarter of 2015 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.

 “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.

Guinigundo said the number of households using remittances for savings has increased to 41.4 percent in the fourth quarter of last year.

On the other hand, Guinigundo said 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.