Resources of PH banks reached P8.36T in 2012

Robust economy boosted savings, loan demand


MANILA, Philippines—The growth in the combined resources of the banking sector accelerated in 2012 as the country’s better-than-expected economic growth pushed savings and boosted demand for financial services.

Data from the Bangko Sentral ng Pilipinas showed that banks in the country ended 2012 with combined resources of P8.36 trillion, up by 9.4 percent from P7.64 trillion the previous year.

The year-on-year growth in resources was faster than the 5.7 percent growth posted in 2011.

Monetary officials said the enormous resources of banks indicated that there are enough funds to bankroll investments.

They added that the banking sector’s resources would further grow this year on the back of a healthy economy.

Of the total resources in 2012, universal and commercial banks accounted for P7.49 trillion.

Thrift banks accounted for P681.55 billion, while rural and cooperative banks accounted for the balance of P187.62 billion.

Bank resources are composed largely of deposits from the public, profits and retained earnings.

The growth in deposits from individuals and businesses was aided by rising household and corporate incomes.

Remittances from overseas Filipino workers were largely credited for helping increase savings of at least 10 percent of households in the country.

Higher profits and retained earnings of banks were attributed to the increase in demand for loans and other financial services that came with an expanding economy.

Last year, the Philippines grew by 6.6 percent, beating most projections and the government’s official target of 5 to 6 percent.

Given their increasing resources, the BSP has encouraged regulated institutions to boost lending to businesses that have investment plans.

Outstanding loans from universal and commercial banks in the country actually grew by 16.4 percent last year.

Officials said that there was still room for growth with lending seen rising at a double-digit pace without triggering worrisome inflation.

Outstanding loans reached P3.24 trillion as of the end of 2012 compared with P2.79 trillion at the end of 2011.

“Domestic credit-to-GDP ratio [in the Philippines] still ranks among the lowest in the region,” BSP Governor Amando Tetangco Jr. said in an economic forum Tuesday.

The ratio for the Philippines stood at 50.4 percent as of end-2012.

The ratios stood above 100 percent for Malaysia, Singapore, Japan, China, and Korea.

The BSP said efforts to attract foreign investors should be strengthened for the economy to take advantage of the huge funds available in the country’s banking sector.

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  • Alex Arriola

    Come on people of the philippines, why are we all expecting toooo much to in a span of 3 years? The terms not even done yet! How much changed have we made for our country than the guy in charge? Huh?! we have been like this even before we’re all born and we all expect it to be over this soon? can we look at our personal selves first people? wel anyway this is teh internet were all the perfect resident of the cyberspace and we can say what we want. Good luck to us.

  • NoWorryBHappy

    P8.36Trillion = $206Billion
    Am I right ?
    Then why are there so many Filipinos living in poverty ?

  • Raymond Montero

    How come that P’noys government has already bragging about his “so called” good economic development of our country when there’s still a widespread poverty-related crimes, unemployment and inequality which continuesly on going in a day to day basis.
    Was that so called “good economic development” are meant exclusively to be enjoyed by the government, banks and corporations in their alliances for “greed for profit”, and only just a pathettic wishful thinking of the common people in general?Logically speaking I think the more realistic measure of a “true economic progress” is when the common people e.g the masses (the poor and disenfrancised) has directly felt the significant improvement in their quality of living.I’ll take for example the Scandanavian nations whose extensive “social welfare systems has made them the worlds highest living standards. If only the Phillippine government would be committed to do the same, there’s a big possibility the progress and harmony is not far from us.

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