Bank deposits in Cebu up 16% to P426 billion

CEBU, Philippines - Money deposited in banks in Cebu totaled P425.78 billion last year, up from 2014, as the banking sector continues to post robust growth.

Latest data from the Philippine Deposit Insurance Corp. showed that bank deposits in Cebu last year recorded a 15.56 percent rise from P368.44 billion in 2014.

Total bank accounts held by Cebu banks also increased last year to 2.257 million from 2.113 million in 2014.

Cebu, the financial center in Central Visayas, accounted for the bulk of bank deposits in the region in 2015, which reached P499.33 billion. That is up 16 percent from P431.21 billion in 2014.

Bank accounts held by banks in the region stood at 3.138 million in 2015 from 2.926 in 2014.

Savings and time deposits remained the main fund sources of local banks. Other deposits include demand deposits and foreign currency deposit units (FCDUs).

Cebu Bankers Club President Maximo Eleccion said the increase in deposits "is a testament of depositor confidence and trust in the banking system not just in Cebu but the whole banking system."

"Cebu is a vibrant and fast growing economy, growth is consumer-driven," Eleccion told The FREEMAN yesterday.

The bank official believes Cebu will sustain this growth for years considering the consistent rise in bank deposits.

"People have funds to spend that fuel and drive the economy to grow," he said.

As of end 2015, there are a total of 510 operating bank offices in Cebu (237 are in Cebu City) and 686 in Region 7 which also comprises Bohol, Siquijor and Negros Oriental.

Furthermore, bank deposits in Bohol reached P34.73 billion; Negros Oriental, P36.70 billion; and Siquijor, P2.12 billion.

Banks are accountable for the accuracy of financial reports they submit to PDIC, from which industry statistics are derived, the deposit insurer said.

"If a bank fails to submit the report for the current period, the bank's most recent submitted report is used," PDIC said. (FREEMAN)