Deposits in the country’s banks continued posting growth, reflecting the strength of the local financial system that supported economic growth amid global headwinds.
Data released by the Bangko Sentral ng Pilipinas (BSP) showed deposits in local banks in May rose by 17.5 percent to P4.7 trillion from P4 trillion in the same month last year.
“The continued growth in deposits reflected the depositors’ sustained confidence in the banking system,” the BSP said in a report.
Savings deposits grew by 16.7 percent, accounting for nearly half of the funding base of banks. Demand deposits expanded by 20.1 percent year-on-year while time deposits rose by 14.8 percent in the same period, according to the BSP report.
The growth in deposits supported lending expansion in lending in the same period, the BSP said. Loans extended by universal and commercial banks grew by 13.1 percent at the end of May, accelerating from 12 percent the month before.
Universal and commercial banks make up 90 percent of the country’s entire banking system.
Inclusive of placements in the BSP, bank loans were up 13.1 percent at the end of May, slowing down slightly from 13.7 percent the month before.
Loans for production activities—which accounted for 90 percent of the banks’ aggregate loan portfolio—accelerated to 13.3 percent in May from 12 percent in April.
Consumer loans in the same month rose slightly to 11.7 percent from 11.5 percent a month earlier.
“The continued brisk growth in bank lending suggests adequate funding for domestic economic activity in the months ahead,” the BSP said in a previous statement.