MANILA, Philippines - Bank deposits grew 8.2 percent in the first half, boosting the total resources of the country’s banking industry, the Bangko Sentral ng Pilipinas (BSP) reported yesterday.
Based on the central bank’s Report on Economic and Financial Developments for the Second Quarter 2015, total bank deposits amounted to P6.8 trillion from January to June, P500 billion higher compared to P6.3 trillion in the same period last year.
The BSP said growth in deposits in the second quarter was faster than the 7.5 percent growth posted in the first quarter.
Data showed savings deposits rose 8.8 percent, while demand deposits went up 13 percent in the first half. Time deposits inched up 2.9 percent during the period.
On the other hand, the BSP said foreign currency deposits owned by residents increased 9.5 percent to P1.4 trillion in the first semester of the year.
The report said the total resources of the country’s banking system went up 8.6 percent to P11.5 trillion in end June this year from P10.6 trillion in end June last year.
Bank resources accounted for 88.8 percent of gross domestic product (GDP) in the first half.
“The health of the Philippine banking system remained solid. Banks’ balance sheets were marked by a sustained growth in assets and deposits,” the BSP said.
The BSP added banks continued to dominate the financial sector as universal and commercial banks accounted for 90 percent of total banks’ assets.
It added asset quality indicators also continued to improve while capital adequacy ratios remained above international standards, even with the implementation of the tighter Basel III framework.
The Philippine banking system’s gross non-performing loan (GNPL) ratio improved to 2.4 percent as of end-June this year from 2.7 percent in end June last year.