Bank deposits breach P10 T-mark in November

MANILA, Philippines - Filipinos are able to save more amid the country’s sustained economic expansion, translating to a double-digit growth in bank deposits to a record P10.1 trillion in November 2016.

Data from the Bangko Sentral ng Pilipinas (BSP) showed the all-time high bank deposit level in November was 13.5 percent higher than the P8.9 trillion booked in November 2015.

Peso deposits rose 12.9 percent to P8.29 trillion from P7.34 trillion while foreign currency deposits owned by residents increased 15.4 percent to P1.8 trillion from P1.56 trillion.

The country’s gross domestic product (GDP) growth accelerated to 7.1 percent in the third quarter of last year from seven percent in the second quarter bringing to 71 the number of consecutive quarters the Philippines has been posting positive GDP expansion.

The improving economy translates to higher income allowing Filipinos to set aside more for savings.

The steady growth in deposits resulted in the 12.4 percent growth in the total assets of the banking industry to P13.2 trillion in end-November.

This allowed Philippine banks to lend more as loans rose 18.5 percent to P7.4 trillion allowing the banking sector to keep pace with the economic growth.

BSP Governor Amando Tetangco Jr. said the Philippine banking industry played a significant role in helping sustain the pace of economic growth.

“In other words the Philippine banking sector not only survived 2016, it continued to thrive. And more than these, our stress tests indicated that our banks can withstand extreme shocks in both credit and market risks,” he said.

According to him, the Philippines is the only banking industry within Asia-Pacific that was given positive outlook by Fitch Ratings in 2016 while Moody’s Investors Service recognize the country’s banking industry as the only one within ASEAN that has a stable outlook on all rating factors – operating environment, asset quality and capital, profitability, funding and liquidity.

“Indeed, our banking sector is sound, stable, and continues to be a source of strength for our economy.  The Philippine economy has recorded 71 quarters of uninterrupted growth. Our banks helped nurture this virtuous cycle for our economy,” the BSP chief added.