Quantcast
Latest Stories

Bank deposits up by 7%

Growth indicates public confidence in banking system

By

Deposits placed in the country’s banking system rose in 2012 as growing incomes allowed individuals and enterprises to set aside their excess money liquidity.

Rising deposits were credited for helping boost the total resources of banks, which allowed them to lend more.

Data from the Philippine Deposit Insurance Corp. (PDIC) showed that total deposits in the banking sector reached P5.75 trillion as of the end of 2012, up by 7 percent from P5.37 trillion a year ago.

Of the amount, the bulk of P4.7 trillion was accounted for by peso-denominated deposits while the balance represented the share of placements in foreign currency deposit units (FCDUs) of banks.

Saving deposits accounted for P2.56 trillion and of the P5.75 billion, P2.56 trillion represents savings deposits, while demand deposits amount to P1.337 trillion. Time deposits account for the balance.

The growth in deposits came along the expansion of the economy. Monetary officials said that as the economy grew, people saved more and with the rise in deposits, banks were able to lend more to individuals and businesses, resulting in further expansion of the economy.

Last year, the Philippine economy grew by 6.6 percent year on year, registering one of the fastest growth rates in Asia during the period. It beat the government’s target of 5 to 6 percent.

According to PDIC, rising deposits is a reflection of public confidence in the banking sector.

PDIC officials said that keeping the public’s trust in the banking sector was the primary objective of the state-owned deposit insurer. This is why, according to officials, PDIC has been ensuring the prompt payment of deposit insurance claims in the event of bank closures.

But more important than the prompt servicing of deposit insurance claims, officials said, was the implementation of measures to strengthen the banking sector to prevent closures.

This is the reason PDIC and the Bangko Sentral ng Pilipinas have been implementing an incentives program for mergers. The program is meant to encourage strong banks to acquire weak rural banks so that bank closures can be avoided or reduced.

In 2012, there were 24 banks with a combination of 97 branches that closed, most of which were rural banks. These figures were lower than the 29 closed banks with 125 branches that closed in 2011.

The state-owned insurer paid P3.76 billion in deposit insurance claims last year. This was lower by nearly 70 percent than the P12.36 billion paid in the previous year.


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: banks , Business , deposits

  • joboni96

    nakangisi ang mga intsik switik banks
    bdo metrobank pnb chinabank rcbc etc

    1% interest sa ating mga pilipino
    5% sa intsik switik mula sa bonds ng gobyernong pilipino

    1. BANKO NATIONAL NG PILIPINO
    owned by pilipinos only

    2. direct retail sale of government bonds
    to pilipinos only

    3. retire all government foreign loans
    using government foreign reserves
    replenished by $20 billion by pilipinos every year

    4. expanded government bonds bought by pilipinos
    to fund mega projects
    no foreign loans, no foreign ownership

    5. anti trust law
    bumiputra law



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

  • Malaysia, Flight 370 relatives talk financial help
  • Celebrating Easter and creativity in New York
  • Man wins half marathon, dies in Argentina
  • Clouds to bring slight relief from summer heat
  • Canadians rally to legalize marijuana
  • Sports

  • Reigning champs Miami open playoffs with win
  • Spurs subdue Mavericks in playoff opener
  • Wawrinka beats Federer to win Monte Carlo Masters
  • Ageless Hopkins pitches 50-50 Mayweather deal
  • Goodbye MGM, Las Vegas for Pacquiao?
  • Lifestyle

  • Miss America: Don’t suspend teen over prom invite
  • 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
  • Entertainment

  • ‘Captain America’ stays strong atop US box office
  • Easter musings
  • Solenn in shorts
  • Unmerry mix of attention-calling moves on ‘Mini-Me’ TV tilts
  • Persistence pays off for The 1975
  • 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

  • Nintendo’s trailblazing Game Boy marks 25th anniversary
  • 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
  • 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

  • Obama on mission to quiet Asia skeptics
  • 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
  • Marketplace