PH BANKS’ DEPOSIT LIABILITIES RISE 5.8%
THE total domestic deposit liabilities of the Philippine banking industry rose to P12.838 trillion as of end- June but recorded a slower growth pace from a year ago, the Philippine Deposit Insurance Corp. (PDIC) reported on Thursday.
In a report, the state- run deposit insurer said deposit liabilities increased by P704.6 billion, or 5.8 percent from P12.13 trillion a year ago.
But the year-on-year increase as of June this year was slower than the 10.3 percent growth during the same period in 2018.
“The continuing slowdown in year- on- year growth of deposit
amount largely reflects the decelerated growth in deposit levels in commercial banks ( KBs) and thrift banks ( TBs) at 6.2 percent and 1.0 percent, respectively,” PDIC explained.
It also noted that “the elevated interest rates in deposit substitutes, such as government securities, among others, could have swayed some resources away from bank deposits.”
“The deposit amount in rural banks ( RBs), however, was generally unaffected by this movement as it grew by 7.8 percent faster than last year’s 4.8 percent,” PDIC added.
Meanwhile, it reported a 13.8- percent increase in total domestic deposit accounts to reach 67.8 million as of endJune this year.
“RBs posted the highest annual growth in deposit accounts at 23.7 percent, followed by TBs and KBs (commercial banks) at 13.8 percent and 12.0 percent, respectively,” PDIC said.
Savings deposits and time deposits were the main types of deposit products, which jointly accounted for 74.8 percent of the total domestic deposit during the period.
Individuals and private corporations made up 79.5 percent of the total domestic deposits in the industry, while 13.3 percent belonged to government.
PDIC said fully insured deposit accounts, or deposit accounts with balances within its maximum deposit insurance coverage of P500,000, comprised 96.4 percent of the total domestic deposit accounts and represented 11.7 percent of the total.
This is equivalent to P1.5 trillion, up by 5.6 percent from the same period in the previous year.
To recall, seven banks were already placed under the PDIC receivership so far this year.