The Philippine Deposit Insurance Corporation (PDIC) reported that the total amount of deposits as of end of the first quarter of this year grew by 8.9% or P411 billion, compared to the first quarter of 2010. As of end March 2011, deposits in Philippine banks had reached P5 trillion. The growth is marginally slower than the 9% registered in the same period of last year. PDIC also reported that deposits in thrift banks posted double-digit growth at 10% from 6.7% as of end March 2010.

PDIC President Valentin A. Araneta said that the continued growth of bank deposits is indicative of the continued confidence of the public in the banking system and the Filipinos’ predisposition to save for the rainy days.

PDIC’s First Quarter Report on Deposits showed that deposits in commercial banks (KBs) continued to grow at 8.9%, although slower than its 9.2% annual growth in March 2010. Thrift banks registered accelerated growth of 10.0% from 6.7%, while deposits in rural banks grew slower at 6.2% from 12.2% in the previous period. Commercial banks continued to hold the largest share of deposits in the Philippine banking system at 88.2% of the total. The deposit share of thrift banks was 9.3% while that of rural banks was 2.48%.

Savings accounts still dominate all deposit types at 47.2%, followed by time and Long-Term Negotiable Certificate of Deposits (LTNCDs) at 33.7%. Demand & NOW deposits only account for 19.1% of the total number of deposit accounts. Savings accounts and Demand & NOW deposits both grew double digit at 12.6% and 10.7%, respectively, whereas time deposits grew by only 3.4%. Although time deposits grew slowest in KBs, the growth of savings deposits was highest in the big banks at 13.8%.

The aggregate deposit amount maintained by Individuals stood at 56.2% of the total deposit amount, almost twice the amount of deposits maintained in private corporations. Private corporations and government deposits accounted for 29.7% and 11%, respectively, of the total deposit amounts.

PDIC said 97% of the total number of accounts amounting to P884.86 billion are fully covered up to the maximum deposit insurance coverage (MDIC) of P500,000.