As more savers opt to keep their money in banks, more deposit accounts in the Philippine banking system continue to benefit from deposit insurance provided by the Philippine Deposit Insurance Corporation (PDIC) up to the maximum deposit insurance coverage (MDIC) of P500,000 per depositor per bank.
Latest data released by the state deposit insurer showed that as of September 30, 2020, 96.7 percent or 76.1 million of the 78.7 million total deposit accounts maintained in 537 banks nationwide are fully insured by PDIC.
The total number of fully insured accounts was 11.8 percent more compared to the 68.1 million recorded in the same period in 2019. In terms of amount, 11.6 percent or P1.7 trillion of the P14.3 trillion total deposits is fully covered by deposit insurance and represents an increase of 11.3 percent from the P1.5 trillion insured deposits in the same period in 2019.
The PDIC reported that the double-digit growth in the number of fully insured accounts year-on-year mirrored the double-digit growth of 11.7 percent in the number of total deposit accounts in banks nationwide. Total deposit amount grew 9.5 percent year-on-year from P13.1 trillion to P14.3 trillion.
“The steady growth in the number of deposit accounts and in terms of amount of deposits, reflects increased depositor confidence in the banking system despite the adversities posed by the pandemic. We are confident that the full year data will present even brighter prospects for saving as a positive response to the health crisis. As depositor confidence has become evident, it is important for PDIC to also help sustain the trust of the depositing public through adequate deposit insurance coverage and effective supervision of banks’ operations,” PDIC President Roberto B. Tan said.
Deposit data released also showed that deposits with balances of P100,000 and below posted the biggest growth in terms of amount and accounts, or by 12.4 percent from P476.7 billion in September 2019 to P535.7 billion in September 2020. This mirrored the double-digit growth of 11.9 percent from 63.6 million deposit accounts to 71.2 million accounts.
Meanwhile, deposits with balances greater than P100,000 up to P500,000 increased by 10.8 percent from P1.0 trillion in end-September 2019 to P1.1 trillion in end-September 2020. This accounted for an increase of 11.4 percent from 4.5 million deposit accounts to 5.0 million deposit accounts. Further, data showed that deposits with balances above P500,000 grew by 9.3 percent from P11.6 trillion to P12.7 trillion. This represented an increase of 6.7 percent in terms of number of deposit accounts from 2.4 million to 2.6 million.
In these uncertain times, Filipinos showed an inclination to save through banks. Savings deposits and demand deposits/NOW accounts amounted to P6.8 trillion and P3.9 trillion, respectively, and jointly accounted for the bulk of total domestic deposits at 74.5 percent. Meanwhile, combined time deposits and LTNCDs amounting to P3.7 trillion accounted for 25.5 percent of the deposits.