MANILA, Philippines - More Filipinos continue to entrust their funds as bank deposits recorded a double digit increase in the first half amid the strong economic growth.
Data from the state-run Philippine Deposit Insurance Corp. (PDIC) showed bank deposits grew 12.3 percent to P9.64 trillion from January to June compared with P8.58 trillion in the same period last year.
Of the total amount, PDIC said only 22.3 percent or P2.14 trillion are insured.
PDIC said peso deposits increased 11.9 percent to P8 trillion from P7.15 trillion while foreign currency deposits owned by residents jumped 14 percent to P1.63 trillion from P1.43 trillion.
Statistics showed the number of peso and foreign currency deposit accounts increased 6.3 percent to 52.4 million in the first half from 49.3 million in the same quarter last year.
Earlier, the Bangko Sentral ng Pilipinas (BSP) reported the total resources of Philippine banks went up 11.7 percent to P12.84 trillion in the first half from a year-ago level of P11.5 million.
The total resources of big banks or universal and commercial banks increased 12 percent to P11.57 trillion from P10.33 trillion while that of mid-sized banks or thrift banks grew 10.5 percent to P1.06 trillion from P964.7 billion.
The country’s gross domestic product (GDP) growth accelerated to seven percent in the second quarter from 6.8 percent in the first quarter amid the strong boost from election related spending.
This brought the country’s GDP expansion to 6.9 percent in the first half of the year from 5.5 percent in the same period last year.
Deposits continue to be the major source of resources of Philippine banks.
The continued rise in resources including deposits, profits, and retained earnings indicate that banks have the ability to service funding needs of corporate and household clients.
At the same time, this shows banks have enough to act as a buffer against any external shocks.
The BSP said the country’s banking system maintains its strong position as it continues to support economic growth.