TOTAL bank deposits neared the P10-trillion mark as of end-August, data from the Bangko Sentral ng Pilipinas (BSP) showed, marking sustained growth in the local banking industry amid volatility in global financial markets.
Philippine banks held P9.668 trillion in total deposits for the month, 11.4% higher than the P8.677 trillion in resources held by the lenders in August 2015, central bank data bared.
Peso deposits continued to form bulk of total bank deposits, accounting for 82.8% of the sum at P8.012 trillion. The figure also grew by 12% from the P7.151 trillion seen a year ago, but slipped by a tad from the P8.029-trillion deposits tallied at end-July.
Nearly all types of peso deposits grew from a year ago, led by a 16% increase in demand deposits to reach P2.145 trillion from 1.849 trillion. Savings accounts also saw a double-digit increase to P3.985 trillion, up by 14.7% from last year’s P3.474 trillion
“Savings and demand deposits remained the primary sources of funds for the banking system,” the BSP said in its quarterly inflation report released last week.
Funds placed under time deposit, which earn interest at a fixed term, likewise grew by 3.3% to P1.771 trillion coming from the P1.714 trillion as of August 2015.
Meanwhile, money lodged under the long-term negotiable certificates of deposits stood at P110.544 billion, a 2.9% drop from 113.854 billion a year prior.
On the other hand, foreign currency deposits accounted for less than a fifth of total bank liabilities at P1.657 trillion in August, 8.5% higher than the P1.527 trillion tallied a year ago.
Expressed in peso terms, the value of savings accounts holding foreign currency deposits rose by 11.6% to P826.879 billion from P740.757 billion last year, and accounted for about half of the total.
Foreign funds placed under time deposits stood at P772.102 billion, up by 5.1% from August 2015’s P734.798 billion, while those under demand deposit accounts rose by 12.9% to P57.573 billion from P51.012 billion, data showed.
The central bank said the sustained growth in bank deposits showed the sustained expansion of the industry, which in turn assists brisk economic activity.
“The Philippine banking system continues to be resilient in supporting economy’s long-term growth. This was evident in banks’ balance sheets that are marked by steady growth in assets and deposits,” the BSP said.
The central bank also pointed out that banks remained armed with more than enough capital buffers against financial stress, alongside improving asset quality which saw a lower share of soured debts relative to total loans.
Bank lending grew by 17.3% in August from a year ago which funded more production activities, the central bank earlier said. — Melissa Luz T. Lopez