The banking sector’s resources rose further in November which, according to regulators, showed that banks in the country would be able to support faster economic growth this year.
Officials of the Bangko Sentral ng Pilipinas said the growing resources of domestic banks also showed the stability of the industry despite the lingering crisis in the eurozone.
Data from the BSP showed that as of end-November, the combined resources of banks operating in the country amounted to P7.5 trillion, rising by 6 percent from P7.05 trillion in the same period last year.
The growth in resources was driven by the sustained rise in deposits from the public that indicated the confidence of individual and corporate depositors in the ability of Philippine banks in general to take care of their money, regulators said.
The rise in deposits likewise indicated the generally growing income levels both of households and corporate entities, despite the ill effects of the prolonged debt crisis in the eurozone.
Europe is host to many overseas Filipino workers and serves as a major market for goods produced by Filipino exporters.
Economic officials said that except for the decline in export earnings, the Philippines was not significantly harmed by the crisis in the eurozone.
They said demand for Filipino workers continued to grow in alternative labor markets, and that domestic consumption and investments had been on the rise, offsetting the dampening effects of the export decline.
Universal and commercial banks accounted for P6.7 trillion in resources, with thrift banks and rural banks holding nearly P596 billion and P185 billion, respectively.
Regulators said the growing resources of banks in the country would help support further increase in loans to the public to support consumption and investments.
By the end of 2011, outstanding loans from universal and commercial banks in the country stood at P2.77 trillion, rising year on year by 19.3 percent.
The BSP said bank lending was expected to register another double-digit growth this year given potential increases in demand for loans, especially from investors, and the strong appetite of banks to lend.
The BSP said the government’s push for the implementation of big-ticket public infrastructure projects under the Public-Private Partnership (PPP) program was seen to help boost demand for loans this year.
Under the PPP, the government invites private enterprises to invest in public infrastructure projects.