Deposits in the Philippine banking system posted a double-digit growth of 12.0% from P7.6 trillion in 2013 to P8.5 trillion as of yearend 2014.

Data from the Philippine Deposit Insurance Corporation (PDIC) showed that of the P8.5 trillion in total deposits, deposits in commercial banks accounted for 90.1% (P7.7 trillion), thrift banks for 8.2% (P699.9 billion) and rural banks for 1.7% (P144.5 billion). Deposits in commercial banks grew by 12.3% while deposits in thrift and rural banks recorded growth rates of 9.9% and 6.5%, respectively.

By account type, savings deposits constituted 39.4% (P3.4 trillion) of total deposits, followed by time deposits at 23.9% (P2.0 trillion). Demand/NOW and FCDU deposits comprised 20.1% (P1.7 trillion) and 16.7% (P1.4 trillion), respectively. All account types posted double-digit growth rates. FCDU deposits outpaced all other deposits increasing by 23.6%, compared to savings and demand/NOW deposits which grew by 11.1% and 10.1%, respectively and time deposits at 8.0%.

The increase in deposits may be attributed to the expansion of branch network across all bank types. As of end-2014, total banking offices (head offices and branches) stood at 10,041, an increase of 9.3% from 9,184 banking offices in 2013. Rural banks had the fastest expansion rate of 18.2% from 2,132 in 2013 to 2,519 in 2014, followed by thrift banks at 7.5% from 1,791 to 1,925. Commercial banks, on the other hand, grew by 6.4% year-on-year from 5,261 to 5,597.

Total deposit accounts increased by 4.5% to 47.4 million from the 45.4 million accounts registered in 2013, with rural banks leading the increase in number of accounts at 6.8%, followed by thrift banks and commercial banks at 5.3% and 3.9%, respectively.

Of the total deposits, P1.9 trillion or 22.2% are insured by PDIC given the Maximum Deposit Insurance Coverage (MDIC) of P500,000. Around 96.6% of all deposit accounts are estimated to be fully insured while 3.4% have balances in excess of the MDIC and are partially insured up to P500,000 only.

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