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May 27, 2024

Bank deposits grow by 10% in March, reflecting Filipinos’ confidence in the banking sector

According to the Bangko Sentral ng Pilipinas (BSP), bank deposits in the Philippines increased by 9.8% in March compared to the same period last year, reaching a total of P17.7 trillion, indicating sustained confidence in the industry despite recent bank failures in the US.

The majority of the deposits were peso-denominated and sourced from resident individuals and private corporations, with savings deposits comprising the largest share, followed by demand and negotiable order of withdrawal (NOW) accounts and time deposits.

Bankero and BSP Governor Eli Remolona affirms the resilience of the Philippines’ banking system, stating that sufficient capital and liquidity have contributed to the strength of banks during the pandemic recovery.

This is in contrast to previous crises where banks were a vulnerability.

The total assets of Philippine banks also expanded by 11% to P23.1 trillion, surpassing pre-pandemic growth rates, and the capital adequacy ratios of the banks were well above the required thresholds.