Resources of the country’s banking sector continued to grow in the third quarter of 2012, boosted by rising deposits from the public and sustained profit generation.
According to the Bangko Sentral ng Pilipinas, growth in resources helped banks extend more loans to borrowers, thereby propping up the economy supporting more consumption and investment activities.
Data from the BSP showed that combined resources of all banks in the country—from small cooperative banks to universal and commercial establishments—reached P7.86 trillion as of the end of September, up by 6.8 percent from the P7.36 trillion reported in the same period last year.
This followed the 5-percent year-on-year increase registered in June to P7.67 trillion from P7.31 trillion.
Deposits of individuals and enterprises, well as profits and retained earnings, make up the bulk of banks’ resources.
According to the BSP, universal and commercial banks accounted for much of the resources at P7.05 trillion.
The amount represented a 6.8-percent rise from P6.6 trillion.
Thrift banks accounted for P622.39 billion of total resources. This was up by nearly 8 percent from P576.85 billion.
Rural and cooperative banks accounted for P187.76 billion, up by 1.14 percent from P185.64 billion.
Banks will continue to accumulate resources this year, BSP officials said, as demand for banking services are expected to grow due to the economy’s expansion.
Officials said the rising resources would enable banks to meet higher demand for loans from consumers and businesses in 2013.
The government has set a faster economic growth target of 6 to 7 percent in 2013.