The Philippine Deposit Insurance Corporation (PDIC) reported that total deposits in the Philippine banking system grew by 8.8% to P12.7 trillion as of December 31, 2018 from P11.7 trillion in the previous year.
It added that total number of deposit accounts in 2018 posted a double-digit growth of 10.1% to 62.9 million from 57.1 million accounts as of end-2017.
Of the total number of accounts, 60.5 million or 96.3% are fully insured by PDIC or have balances that are within the maximum deposit insurance coverage of P500,000.
“The growth of deposits, both in terms of amount and number of accounts, reflects increased depositor confidence in the banking system. It is imperative to sustain the trust of the depositing public by ensuring that PDIC is able to serve through adequate insurance coverage on deposits and effective regulation for sound deposit practices and operations of banks,” PDIC President Roberto B. Tan said.
In terms of type of deposit, savings deposits and time deposits jointly accounted for the bulk of total domestic deposits at 75.2%. Savings deposits amounted to P6.0 trillion, while time deposits totaled P3.6 trillion as of end-2018. However, in terms of growth rate, time deposits and long-term negotiable certificates of deposits (LTNCD) grew the fastest at a double-digit rate of 10.3%, followed by demand deposits and negotiable order of withdrawal (NOW) accounts at 8.3%, and savings deposits at 8.1%.
In terms of type of depositors, individuals and private corporations made up for 78.8% of the total domestic deposits in the Philippine banking system, while government deposits represented 13.6%. Deposits by banks, trust departments, and non-residents accounted for the balance.
Peso accounts amounting to P10.6 trillion were recorded at 83.5% of the total domestic deposits, higher by 9.2% from the P9.8 trillion posted as of end-2017.
Meanwhile, foreign currency deposits amounting to P2.1 trillion comprised 16.5% of the total domestic deposits, higher by 7.2% than the P2.0 trillion foreign currency deposits recorded as of end-2017.