Quantcast
Latest Stories

Resources of PH banks reached P8.36T in 2012

Robust economy boosted savings, loan demand

By

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.


Follow Us


Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Banking , economy , Philippines

  • http://www.facebook.com/people/Alex-Arriola/100000464330208 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 ?
    INCLUSIVE GROWTH IS AN ILLUSION.

  • http://www.facebook.com/raymond.montero.35 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.



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement

News

  • $57-B mega plan to solve Metro’s mega woes
  • Aquino vows to step up fight against corruption
  • Santiago scoffs at rushing defense pact for Obama visit
  • Former solon, 2 others sanctioned for unfair labor practice
  • Let us pray for the nation, healing priest asks leaders
  • Sports

  • UE Warriors test new system in Filoil Hanes Cup
  • Boxer Rubin ‘Hurricane’ Carter dies at 76
  • Wawrinka beats Federer to win Monte Carlo Masters
  • Rain or Shine grabs No.4, sends Ginebra to 8th
  • Red-hot Alaska rips injury-depleted San Mig Coffee
  • Lifestyle

  • Transitions and resurrection in the performing arts
  • ‘Archaeology tour’ of Cebu’s heritage of faith
  • Historic Fort Bonifacio tunnel converted into a septic tank
  • ‘Imports’ from London, and play of the year
  • Korean animation comes of age
  • Entertainment

  • Easter musings
  • Solenn in shorts
  • Unmerry mix of attention-calling moves on ‘Mini-Me’ TV tilts
  • Persistence pays off for The 1975
  • Special section in LA fest for Filipino films
  • Business

  • BDO seen keen on bidding for Cocobank
  • Bataan freeport investment pledges up 1,302%
  • Golden Week
  • Bourse to woo Cebu stock mart investors
  • Supper power
  • Technology

  • Nasa’s moon-orbiting robot crashes down
  • Netizens pay respects to Gabriel Garcia Marquez
  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Facebook rolls out ‘nearby friends’ feature
  • Netizens seethe over Aquino’s ‘sacrifice’ message
  • Opinion

  • Gigi’s home
  • Palace stonewalls on MRT inquiry
  • Couple of things too
  • There is plenty of water behind Wawa Dam
  • Triduum thoughts of a young boy
  • Global Nation

  • Search for Etihad passengers launched
  • Japan presents $57-B ‘dream plan’ to solve Metro congestion
  • Tim Tebow’s charity hospital in Davao seen to open in 7 months
  • OFW died of Mers-CoV in Saudi Arabia, says family
  • Aquino, Obama to tackle US pivot to Asia during state visit
  • Marketplace