Bank deposits rose 9.8% in the year to end-March, outpacing growth a year earlier after deposit insurance coverage was doubled to P1 million per depositor.
Deposit liabilities reached P21.86 trillion as of March 31, according to data from the Philippine Deposit Insurance Corp. (PDIC).
The increase exceeded the 5.3% annual growth recorded in March 2024, before the insurance limit was raised from P500,000 to P1 million on March 15, 2025.
Jose Villaret Jr., PDIC vice president for corporate affairs, said deposit accounts exceeding P1 million grew 10.3% from a year earlier, compared with 5.4% growth before the higher insurance limit took effect.
Thrift and rural banks recorded the fastest growth in large deposit balances, which Villaret said reflected stronger depositor confidence.
“The increase in deposit insurance coverage has reinforced public trust in our banking system and encouraged more people to keep their savings in banks,” he said.
The doubling of the maximum deposit insurance coverage was the first adjustment in 16 years and the first made under the PDIC board’s authority following amendments to the deposit insurance law in 2022.
PDIC said the higher insurance limit was intended to strengthen depositor protection, keep pace with inflation and align the country’s deposit insurance framework with international practices.
