BRANCH network expansion from all types of banks boosted deposits in the Philippine banking system last year, which grew at a double-digit rate from a year earlier, the state-deposit insurer said.
Data from the Philippine Deposit Insurance Corp. (PDIC) showed that deposits in the banking system amounted to P8.5 trillion in 2014, rising 12 percent from the P7.6 trillion in 2013.
Deposits in commercial banks accounted for 90.1 percent or P7.7 trillion of the total, followed by thrift banks with 8.2 percent or P699.9 billion, and rural banks with 1.7 percent or P144.5 billion.
Deposits in commercial banks grew by 12.3 percent while deposits in thrift and rural banks recorded growth rates of 9.9 percent and 6.5 percent, respectively.
By account type, savings deposits constituted 39.4 percent or P3.4 trillion of total deposits, followed by time deposits at 23.9 percent or P2.0 trillion.
Demand deposits comprised 20.1 percent or P1.7 trillion, while foreign currency denominated unit (FCDU) deposits accounted for 16.7 percent or P1.4 trillion.
Total deposit accounts increased by 4.5 percent to 47.4 million accounts from the 45.4 million accounts registered in 2013.
“The increase in deposits may be attributed to the expansion of branch networks across all bank types,” the PDIC said.
It noted that total banking offices (head offices and branches) rose 9.3 percent to 10,041 offices in 2014 from 9,184 in the previous year.
Meanwhile, it said that of the total deposits, P1.9 trillion or 22.2 percent were insured by PDIC with a maximum deposit insurance coverage (MDIC) of P500,000 per deposit account.
The PDIC added that about 96.6 percent of all deposit accounts are estimated to be fully insured while 3.4 percent have balances in excess of the MDIC and are therefore partially insured up to P500,000 only.