Philippine bank deposits grew at a faster pace in the first quarter of 2026, nearing ₱22.1 trillion as households and businesses parked more funds in banks amid sustained confidence in the financial system.

In a statement on Thursday, Aug. 27, state-run deposit insurer Philippine Deposit Insurance Corp. (PDIC) reported that total deposits reached ₱22.04 trillion as of end-March, up by ₱1.97 trillion, or 9.8 percent, from ₱20.1 trillion a year ago.

The increase was nearly twice the 5.3-percent growth, equivalent to ₱1 trillion, recorded between March 2024 and March 2025.

PDIC said the acceleration came a year after the maximum deposit insurance coverage (MDIC) was doubled to ₱1 million per depositor per bank effective March 15, 2025.

Individual depositors and private corporations accounted for more than three-fourths of the year-on-year increase, reflecting stronger cash holdings among households and businesses.

Deposits from individuals increased by ₱913.9 billion, accounting for 46.4 percent of the overall growth, while those from private corporations rose by ₱606.6 billion, contributing another 30.8 percent.

The remaining 22.8 percent came from other institutional depositors, including government entities, banks, and trust departments.

PDIC said the growth may reflect higher household and business income supported by employment, remittances, and business activity, with individuals and companies possibly keeping a larger share of their funds in banks for easier access and security.

“The continued rise in deposit liabilities reflects the public’s sustained confidence in the banking system. Higher household and business deposits suggest that individuals and companies continue to view banks as safe, accessible, and reliable institutions for managing their funds,” PDIC President and Chief Executive Officer (CEO) Roberto B. Tan said.

Time deposits emerged as the biggest driver of growth, increasing by ₱896.1 billion and accounting for 45.5 percent of the overall year-on-year expansion.

PDIC said the strong growth in time deposits suggests that savers sought better returns and may have locked in prevailing interest rates ahead of anticipated rate cuts. Banks may have also encouraged the shift by offering competitive rates and incentives to secure more stable funding.

Demand and negotiable order of withdrawal (NOW) deposits contributed ₱589.6 billion, or 29.9 percent, of the increase, while savings deposits added ₱483.2 billion, or 24.5 percent.

The number of deposit accounts likewise posted double-digit growth, reaching 178.6 million as of end-March, up by 27.2 million, or 18 percent, from a year earlier.

Savings accounts accounted for nearly all of the increase, adding 26.9 million accounts, equivalent to 99 percent of the overall growth.

The deposit insurance system continued to cover nearly all bank accounts following last year’s increase in MDIC.

Fully insured accounts rose by 27.1 million, or 18.2 percent, year on year to 176.5 million, representing 98.8 percent of all domestic deposit accounts.

Total insured deposits, meanwhile, exceeded ₱5 trillion as of March.

PDIC said the continued expansion in deposits, alongside the broad coverage of deposit insurance, reflects sustained public confidence in the banking system following the increase in MDIC to ₱1 million last year.