The Philippine Deposit Insurance Corporation (PDIC) said that total deposits continued to increase in the first half of the year reaching P4.75 trillion and registering a 10.2% increase year-on-year from P4.31 trillion in June 2009. Though the growth was slower than the 13.4% posted for the same period last year, it was stronger than the preceding quarter’s growth of 9.0% and showed sustained growth at the double-digit level.

Latest data from the PDIC disclosed that of the said total, peso deposits amounting to P3.61 trillion represent 76%, while foreign currency deposits aggregating P1.14 trillion have a 24% share. Foreign currency deposits steadily grew at 8.5%, mirroring the consistent growth of remittances from overseas Filipinos channeled through the banking system. Total number of deposit accounts stood at 35.6 million, a 7% increase over the 33.1 million accounts a year ago. This increase in number of accounts partly contributed to the growth in the amount of deposits in the banking system. PDIC President Jose C. Nograles expressed optimism that depositors will continue to show confidence in the banking system by depositing their hard-earned money in banks.

The commercial banking sector remained the largest holder of deposits in the banking system at 88.4% or P4.20 trillion followed by thrift banks with 9.1% or P430.69 billion. Rural banks’ share remained unchanged at 2.5% or P120.31 billion. Deposits increased across all bank categories. As in the first quarter, deposits in rural banks posted the highest growth at 11%. The performance of the rural banks was a significant turnaround from the contraction it registered in the same period of last year.

Individual depositors continued to account for almost 60% of the total deposit accounts in the system, more than twice the deposits of private corporations, at 27.2%. Government deposits, meantime, represented 10.4% of the total deposits in the system.

PDIC reported that the total insured deposits in the banking system as of June 2010 amounted to P1.41 trillion, with 96.9% fully insured at the maximum deposit insurance coverage of P500,000 and 3.1% partially insured.

PDIC's Quarterly Report on Deposits