86% of Filipino house­holds don’t have bank ac­counts – BSP sur­vey

Manila Bulletin - - Business - By LEE C. CHIPONGIAN

The cen­tral bank yes­ter­day said 86 per­cent of Filipino house­holds are un­banked or do not have a de­posit ac­count be­cause they do not have enough cash to spare for keep­ing.

The Bangko Sen­tral ng Pilip­inas’ (BSP) qua­dren­nial Con­sumer Fi­nance Sur­vey (CFS) noted that of the 14 per­cent of house­holds that have de­posit ac­counts, the mem­bers that are banked are mostly em­ploy­ees, ei­ther by pri­vate com­pa­nies or by the govern­ment.

Ma­jor­ity who are un­banked are self-em­ployed, or work­ing for a pri­vate house­hold, other house­hold’s farm, or in other in­for­mal oc­cu­pa­tions.

“The fore­most rea­son cited by house­holds for not hav­ing a de­posit ac­count was not hav­ing enough money to keep an ac­count,” said the BSP. The other rea­sons are: They do not need a bank/cash ac­count; the bank/in­sti­tu­tion lo­ca­tion is far; can­not man­age an ac­count; ser­vice charges are too high; and min­i­mum bal­ance is too high.

Some of those sur­veyed said they “do not like to deal with banks/ in­sti­tu­tions and do not trust banks/ in­sti­tu­tions.”

Of the small num­ber who have bank ac­counts, the BSP said com­mer­cial banks are a pop­u­lar choice. Eight in 10 de­posit ac­counts are kept in th­ese banks or 50.2 per­cent in com­mer­cial banks, 13.8 per­cent in ru­ral/ co­op­er­a­tive banks, 10.1 per­cent in sav­ings/thrift banks and nine per­cent in mi­cro­fi­nance banks. Overall, the for­mal banks ac­counted for 83.1 per­cent of all de­posit ac­counts of house­holds, while 11.4 per­cent, 4.1 per­cent and 3.6 per­cent are in mul­ti­pur­pose/credit co­op­er­a­tive, paluwa­gan and sav­ings and loan as­so­ci­a­tion.

Seven in 10 house­holds had in­ter­est-pay­ing de­posit ac­counts. “This in­di­cated that 30 per­cent of the house­holds still pre­fer to main­tain de­posit ac­counts even if their av­er­age daily bal­ance falls be­low the re­quired amount to earn in­ter­est or had earned a neg­li­gi­ble amount of in­ter­est,” said the BSP.

The CFS – The first was in 2009 and the lat­est in 2014 – culled data on the fi­nan­cial con­di­tions of house­holds, their bor­row­ings, in­come and spend­ing. The 2014 CFS sur­veyed 18,000 house­holds across all the re­gions.

The sur­vey also in­di­cated that in ma­jor­ity of Filipino house­holds, home ap­pli­ances, own res­i­dence and mo­tor

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