Philippine banking system deposits rise 10.7%

Government says it highlights ability of banks to provide credit to the economy.

The Bangko Sentral ng Pilipinas, the central bank, said deposits rose 10.7% in the first two months of the year to US$107 billion from US$97 billion year-on-year.

BSP said the continued growth in deposits reflected depositors’ sustained confidence in the banking system.

Demand deposits posted the fastest year-on-year increase of 11.6% by crossing the trillion peso mark to P1.079 trillion (US$26 billion). Savings deposits jumped 10.7% to US$54 billion from US$48 billion a year earlier. Time deposits rose almost a tenth to US$27 billion.

The central bank deposits data differ from that of the Philippine Deposit Insurance Corp., which is the more expanded version to include, among others, money in foreign currency deposit units.

As of April, peso loans granted by the BSP to banks under its rediscounting facility expanded 5.4% to US$308 million from US$292 million a year ago.

Dollar loans usually granted to exporters fell 0.8% year-on-year to US$52.4 million during the first four months.