Bank deposits rise slower in 2015, reach P9.22 T

Bank deposits grew by a slower 8.6 percent in 2015 after the Bangko Sentral ng Pilipinas (BSP) ordered the closure of weak players in the industry.

Data from the Philippine Deposit Insurance Corp. (PDIC) showed deposits in the banking system amounted to P9.22 trillion last year, P720 billion higher or 8.6 percent compared with P8.5 trillion in 2014.

The latest growth figure was slower than the double-digit 12 percent expansion recorded in 2014.

Deposits in commercial banks went up 7.5 percent to P8.28 trillion last year from P7.7 trillion in 2014 and accounted for 89.8 percent of the total deposits in the banking system.

Likewise, deposits in thrift banks jumped 14.1 percent to P798.7 billion from P699.9 billion for a share of 8.7 percent.

On the other hand, deposits in rural banks declined four percent to P138.7 billion last year from P144.5 billion in 2014 and accounted for 1.5 percent of the total deposits in the system.

PDIC reported a 7.4 percent rise in total deposits to 50.9 million last year from 47.4 million in 2014.

By account type, savings deposits constituted 48.8 percent or P4.5 trillion of total followed by time deposits with 27.9 percent or P2.57 trillion. Demand deposits amounted to P2.02 trillion for a 21.9 percent share.

Of the total deposits, about P2.1 trillion or 22.5 percent are insured, by the PDIC given the Maximum Deposit Insurance Coverage ( MDIC) of P500,000. Around 96.5 percent of all deposit accounts are estimated to be fully insured, while 3.5 percent have balances in excess of the MDIC

and are partially insured up to P500,000 only.

Latest data from the central bank showed the number of banks operating in the country reached 635 in end September last year, 17 lower than the 652 in end September 2014 amid the continued consolidation of banks as well as the exit of weaker players in the banking system.

The number of big banks or universal and commercial banks went up to 37 in the first nine months of last year from 36 in the same period in 2014, while the number of thrift banks was unchanged at 69.