Bank deposits reach record P10.7 T in May

MANILA, Philippines - Filipinos are saving more as bank deposits continued to register a double-digit growth in the first five months of the year, the Bangko Sentral ng Pilipinas (BSP) reported yesterday.

Latest data from the central bank showed deposit liabilities of Philippine banks went up 12.4 percent to a record high of P10.7 trillion in end-May this year from P9.52 trillion in end-May last year.

Peso deposits increased 11.8 percent to P8.82 trillion from P7.89 trillion while foreign currency deposits owned by residents rose 15.3 percent to P1.88 trillion from P1.63 trillion.

The Philippines has booked 73 straight quarters of positive gross domestic product (GDP) growth. The expansion slowed down to 6.4 percent in the first quarter of the year from 6.6 percent in the fourth quarter of last year due to weak private consumption.

The steady growth in deposits resulted to an 11.8 percent increase in the total resources of Philippine banks to P13.87 trillion last year from P12.41 trillion in 2015.

BSP Governor Nestor Espenilla Jr. said a resilient financial sector is key to any economic development.

“Over the years, the Philippine financial system has manifested its strength and sustained growth momentum despite the lingering uncertainties in the global financial markets. Key financial indicators showed stronger balance sheets of banks with double-digit growth in assets, loans, deposits and capital,” he said.

The banking sector’s total resources expanded 12.3 percent to P14.2 trillion in end-May this year from P12.64 trillion in end-May last year.

He added funds generated by banks are primarily allocated to lending activities to productive activities fueling the country’s economic growth.