Cebu bank deposits up 10% in first half

CEBU, Philippines - Money deposited in Cebu banks saw a 10 percent growth in the first half of 2016 to P423.66 billion, reflecting Cebu's growing economic activity.

Latest figures from the Philippine Deposit Insurance Corp. (PDIC) showed that bank deposits in Cebu rose from P385.2 billion recorded in the same period in 2015.

From January to June 2016, total deposit accounts held by Cebu banks also stood at 2,372,473 million, up from last year.

The number of banking offices in Cebu as of end June also reached 513, accounting for most in the Central Visayas region which has a total of 609.

Central Visayas, which also includes Bohol and Siquijor provinces, also recorded a 2 percent rise in bank deposit amount to P462.8 billion, from P454.2 billion last year.  That amount represents 2,979,213 million accounts in the whole region as of end June.

Bangko Sentral ng Pilipinas Governor Amando Tetangco Jr. had earlier lauded the good performance of Cebu banks, given Cebu's potential for investment and growth.

Nationwide, deposits continue to be the major source of resources of Philippine banks.

BSP had reported the total resources of Philippine banks went up 11.7% to P12.84 trillion in the first half from P11.5 trillion last year.

The total resources of big banks or universal and commercial banks increased 12% to P11.57 trillion from P10.33 trillion while that of mid-sized banks or thrift banks grew 10.5% to P1.06 trillion from P964.7 billion.

The BSP had said the banking system maintains its strong position as it continues to support economic growth.

The health of the Philippine banking system remained solid, supported by the country's strong macroeconomic fundamentals and favorable growth prospects.

In a previous outlook on the Philippine banking system, debt watcher Standard and Poor's cited the banking sector's strengths which include a high level of stable core customer deposits that support funding, low risk of sharp correction in property prices and the banks' generally restrained risk appetite.

On the other hand, it said the sector's weaknesses include the low income levels, inherently high credit risk as a result of a weak payment culture and rule of law and limited legal protection for supervisors and poor transparency in financial disclosures. (FREEMAN)