Bank resources rose to P7.72T in end-July

The country’s banking sector continued to enjoy growing resources in July, substantiating claims of regulators that it remains healthy and capable of supporting a faster expansion of the economy through increased lending.

According to documents from the Bangko Sentral ng Pilipinas, the banking sector’s resources amounted to P7.72 trillion as of end-July, up nearly 8 percent from P7.16 trillion a year ago.

Officials said deposits kept by individuals and corporate entities in banks were being aided by rising incomes, adding that the increasing deposits manifested the confidence of the Filipino public in the banking sector.

Universal and commercial banks accounted for P6.92 trillion of the total resources. This was up by 8 percent from P6.4 trillion in July last year.

Thrift banks accounted for P612.37 billion of the total resources, up 6.4 percent from P575.37 billion over the same period last year.

Rural banks accounted for P186.77 billion of the total resources, an increase of only 0.6 percent from P185.64 billion a year ago.

The minimal rise in the resources of the rural banking sector came following a string of closures of rural banks recently.

The BSP said the country’s banking sector was expected to continue meeting the credit needs of corporate entities and consumers given its rising resources.

BSP Governor Amando Tetangco Jr. said the economy was expected to continue posting robust growth in the second half, citing the support the banking sector can give. In the first half, the economy grew by 6.1 percent from a year ago. This kept the full-year growth target of 5 to 6 percent attainable, officials said.—Michelle V. Remo