96.7% of deposit accounts fully insured
DEPOSITS in the Philippine banking system grew by 9% or PhP1.2 trillion, reaching PhP14.9 trillion as of end-December 2020 despite the pandemic, highlighting the propensity of Filipinos to save and to be financially prepared during difficult times.
The sustained growth in deposits indicates that more savers are benefitting from the protection provided by state deposit insurer Philippine Deposit Insurance Corporation (PDIC) up to the maximum deposit insurance coverage (MDIC) of PhP500,000 per depositor per bank.
Latest data released by the PDIC showed that total deposits grew by 9.0% to PhP14.9 trillion as of end-December 2020 from PhP13.6 trillion as of end-December 2019. The number of deposit accounts likewise increased by 8.7% to 80.1 million from 73.7 million deposit accounts in the same period last year.
The boost in deposits also mirrored the expansion of fully insured deposit accounts by 8.8% to 77.4 million from 71.2 million year-on-year. This represents 96.7% of the total fully insured deposit accounts. In terms of amount, PhP1.7 trillion total deposits is fully covered by deposit insurance, an expansion of 8.6% from the PhP1.6 trillion level posted in the same period in 2019.
Further, data as of December 2020 showed that deposits with balances above PhP500,000 grew by 9.0% to PhP13.1 trillion from PhP12.0 trillion in December 2019. Total number of accounts reached 2.7 million by year-end 2020 vis-à-vis 2.5 million at the close of 2019.
In spite of the pandemic, most deposit types registered increases both in terms of accounts and amount. Savings deposits and demand/NOW deposits increased by 16.2% and 20.8%, respectively, or to PhP7.2 trillion and PhP4.1 trillion. Savings deposits and demand/NOW deposits jointly accounted for the bulk of total domestic deposits at 75.9%.|