Commercial bank accounts push end-June deposits over P5T

Deposits in the country’s banking system rose to P5.1 trillion as of June 30 from P4.7 trillion a year earlier, with accounts in universal and commercial banks (KBs) rising by 8.8 percent, according to the Philippine Deposit Insurance Corporation (PDIC). Most of the deposits, 88.7 percent, were placed in the KBs while thrift banks had 8.9 percent. Rural banks held only 2.4 percent. Bangko Sentral ng Pilipinas (BSP) first quarter data showed that there are 2,756 rural banking units nationwide, less 15 from 2,771 last December. BSP figures also indicated that the whole banking system’s capital adequacy ratio, which stands at 16.97 percent on a consolidated basis, is above international and national standards. The Basel Accord reference is 8 percent while the BSP benchmark is 10 percent. Thrift banks, as a whole, saw their accounts grow by 6.1 percent. The accounts of rural banks grew at slower at 4.8 percent. Foreign currency deposits were worth about P1.1 trillion at an exchange rate of P43.3:$1. The rest, P4 trillion, were peso-denominated accounts. Most of the depositors, 55.9 percent, were individual account holders while private corporate accounts were 29.7 percent. Deposits of government agencies accounted for only 11.3 percent of total deposits in the banks. By type of deposit, 47.2 percent were in savings accounts. Time deposits and long-term negotiable certificate of deposits made up 34 percent while demand deposits were 18.8 percent of the whole pie. — ELR/VS, GMA News