Three cities in the National Capital Region (NCR) held almost half or 47.1% of the country’s total bank deposits worth P4.75 trillion as of the first half of this year, according to the Philippine Deposit Insurance Corporation (PDIC). Latest data from PDIC’s Regional Profile of Deposits as of end June 2010 revealed that Makati, Manila, and Quezon City held among themselves, combined deposits amounting to P2.24 trillion, which is 42.5% more than the P1.57 trillion deposits tallied in all other regions outside NCR.

Makati maintained its reputation as the country’s premier financial hub as its 412 banking offices accounted for P1.19 trillion in total deposits. Manila placed a far second with P530 billion in deposits, while Quezon City, which has the highest number of banking units in NCR at 645, placed third with P513 billion.

In terms of number of accounts, Makati experienced tremendous growth which more than doubled to 5.7 million accounts as of end-June 2010. This was attributed mainly to the 131% increase in savings accounts and 55% increase in demand deposit accounts. Deposit accounts in Quezon City and Manila, on the other hand, posted moderate increases of 5.2% and 3.8% to 2.6 million and 2.1 million accounts, respectively.

Meanwhile, deposits amounting to P3.18 trillion remained concentrated in NCR at 67% of the total deposits of P4.75 trillion. The deposits were placed in 2,738 banking units in NCR, for an average deposit size of P1.16 billion per banking office. Total deposits outside NCR maintained in 5,240 banking offices amounted to P1.57 trillion, for an average deposit size of P300 million per banking office. Region 4-A, or the CALABARZON area, which has the highest number of banking offices in the country per region at 1,187, had total deposits amounting to P336 billion. Central Luzon followed with P249 billion and Central Visayas region with P236 billion.

The report also indicated a lopsided picture in terms of per capita distribution of deposits. The national deposit per capita is P50,527, but NCR had a deposit per capita of P275,346, about 250 times higher than the lowest deposit per capita of P1,100 in the Autonomous Region of Muslim Mindanao (ARMM). A distant second is Central Visayas with deposit per capita of P34,205, followed by CALABARZON with P28,851, and the Cordillera Autonomous Region (CAR) with P27,445.

Deposit growth in the provinces, however, increased at a faster rate than NCR, rising by 13.8% as compared with NCR’s 8.5%. There was vigorous growth in Region 2 and ARMM, areas with low bank densities. These suggest the potential for banking in areas outside Metro Manila waiting to be tapped.

The PDIC maintains deposit data as part of its co-regulatory function as well as continuously assess and manage the risks it faces. It was established to protect the depositing public and help maintain public confidence in the stability of the financial system. Its co-regulator authorities were strengthened by Republic Act 9576 which took effect June 1, 2009.