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

  • Obama due in Seoul as North Korea nuclear test fears grow
  • Hold departure order out vs Corona, Singson
  • Malaysia to release MH370 report–PM
  • Man found dead in Quezon City, alleged victim of summary execution–report
  • Aquino to lead Air Force turnover rites
  • Sports

  • Michael Phelps loses to Lochte in comeback meet
  • Sharapova advances to Stuttgart quarterfinals
  • Galedo caps ride of redemption
  • Beermen, Express dispute second semis slot today
  • Lady Agilas upset Lady Bulldogs in four sets
  • Lifestyle

  • ‘Recovered’ Banksy works on display ahead of sale
  • Marinduque: Visiting the ‘palm of the ocean’
  • First at Vatican in 60 years
  • How Jing Monis Salon gave Krissy the pixie
  • Want to be a supermodel? Work on your inner beauty, says Joey Espino
  • Entertainment

  • Paul McCartney to play at Candlestick concert
  • Kristoffer Martin: from thug to gay teen
  • Has Ai Ai fallen deeply with ‘sireno?’
  • California court won’t review Jackson doctor case
  • Cris Villonco on play adapted from different medium
  • Business

  • PAL hailed for ban on shark fin cargo
  • BSP to change tint of P100 bill
  • Nielsen sees car buying boom in the Philippines
  • How author of best-seller exposed ‘one percent’ economic elite
  • Bangko Sentral readies new bank lending rules
  • Technology

  • Cloud strength helps Microsoft earnings top Street
  • Vatican announces hashtag for April 27 canonizations
  • Enrile in Masters of the Universe, Lord of the Rings?
  • Top Traits of Digital Marketers
  • No truth to viral no-visa ‘chronicles’
  • Opinion

  • Editorial Cartoon, April 25, 2014
  • No deal, Janet
  • Like making Al Capone a witness vs his gang
  • MERS-CoV and mothers
  • A graduation story
  • Global Nation

  • China welcomes PH apology
  • Only 4 Etihad passengers not accounted for
  • Abandoned in Malta,15 PH seamen return
  • Senator hopes PH will also get same vow
  • HK victims to get P115M; traders raised money
  • Marketplace