Skip to main content

96.7% of deposit accounts nationwide fully protected by deposit insurance

By

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 PhP500,000 per depositor per bank.

Latest data released by the state deposit insurer showed that as of September 30, 2020, 96.7%--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% more compared to the 68.1 million recorded in the same period in 2019. In terms of amount, 11.6% or PHP1.7 trillion of the PHP14.3 trillion total deposits is fully covered by deposit insurance and represents an increase of 11.3% from the PHP1.5 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% in the number of total deposit accounts in banks nationwide. Total deposit amount grew 9.5% year-on-year from PhP13.1 trillion to PhP14.3 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 PHP100,000 and below posted the biggest growth in terms of amount and accounts, or by 12.4% from PHP476.7 billion in September 2019 to PHP535.7 billion in September 2020. This mirrored the double-digit growth of 11.9% from 63.6 million deposit accounts to 71.2 million accounts.

Meanwhile, deposits with balances greater than PHP100,000 up to PHP500,000 increased by 10.8% from PHP 1.0 trillion in end-September 2019 to PHP 1.1 trillion in end-September 2020. This accounted for an increase of 11.4% from 4.5 million deposit accounts to 5.0 million deposit accounts. Further, data showed that deposits with balances above PHP500,000 grew by 9.3% from PHP11.6 trillion to PHP12.7 trillion. This represented an increase of 6.7% 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 PHP6.8 trillion and PHP3.9 trillion, respectively, and jointly accounted for the bulk of total domestic deposits at 74.5%. Meanwhile, combined time deposits and LTNCDs amounting to PHP3.7 trillion accounted for 25.5% of the deposits. Depositors’ preference for liquidity in these uncertain times, with accounts that allow them to withdraw cash immediately, shows in the negative growth of 7.4% in time deposits and LTNCDs from the previous PhP4.0 trillion in end- September 2019, while savings deposits increased by 14.6% and demand/NOW deposits grew by 21.1%.

The PDIC is an active member of the Financial Sector Forum composed of Philippine financial regulators and staunchly encourages saving through banks. It also strongly advocates financial literacy and financial inclusion as its corporate social responsibility program to promote its mandate of depositor protection and financial stability.

 

(The Philippine Deposit Insurance Corporation (PDIC) was established on June 22, 1963 by Republic Act 3591 to provide depositor protection and help maintain stability in the financial system by providing deposit insurance. Effective June 1, 2009, the maximum deposit insurance coverage is PhP500,000 per depositor. All deposit accounts by a depositor in a closed bank maintained in the same right and capacity shall be added together. A joint account shall be insured separately from any individually-owned deposit account.)

Labels:

Comments

Post a Comment

Popular posts from this blog

Empanada festival: A celebration of good taste and good life

By
By Dominic B. dela Cruz & Leilanie G. Adriano Staff reporters BATAC CITY—If there is one thing Batac is truly proud of, it would be its famous empanada-making business that has nurtured its people over the years. Embracing a century-old culture and culinary tradition, Batac’s empanada claims to be the best and tastiest in the country with its distinctive Ilokano taste courtesy of its local ingredients: fresh grated papaya, mongo, chopped longganisa, and egg. The crispy orange wrapper and is made of rice flour that is deep-fried. The celebration of this city’s famous traditional fast food attracting locals and tourists elsewhere comes with the City Charter Day of Batac every 23 rd  of June. Every year, the City Government of Batac led by Mayor Jeffrey Jubal Nalupta commemorate the city’s charter day celebration to further promote its famous One-Town, One Product, the Batac empanada. Empanada City The Batac empanada festival has already become...
9 comments
Read more

Free dormitories eyed for Nueva Era students in LC, Batac

By
 Nueva Era mayor Aldrin Garvida By Dominic B. dela Cruz ( Staff Reporter) Nueva Era , Ilocos Norte—The municipal government here, headed by Nueva Era mayor Aldrin Garvida is planning to establish dormitories in the cities of Laoag and Batac that will exclusively cater to college students from the said cities. “Sapay la kuma ta maituloyen iti mabiit tay ar-arapaapen tayo ken iti munisipyo a maipatakderan kuma dagiti annak tayo a college students nga agbasbasa idiay siyudad iti Batac ken Laoag iti libre a dormitoryo a bukod da ngem inggana nga awan pay ket an-anusan mi paylaeng nga ibaklay kenni apo bise mayor iti pagbayad da iti kasera aggapu iti bukod mi a suweldo malaksid dagitay it-ited iti munisipyo ken iti barangay nga stipend da kada semester, ” Garvida said.    Garvida added that the proposed establishment of dormitories would be a big help to the students’ parents as this would shoulder the expenses of their children for rent and likewise they would feel...
Post a Comment
Read more

P29 per kilo rice sold to vulnerable groups in Ilocos region

By
BBM RICE. Residents buy rice for only PHP29 per kilo at the NIA compound in San Nicolas town, Ilocos Norte province on Sept. 13, 2024. The activity was under a nationwide pilot program of the government to sell quality and affordable rice initially to the vulnerable sectors. (Lei Adriano) San Nicolas , Ilocos Norte —Senior citizens, persons with disability, and solo parents availed of cheap rice sold at PHP29 per kilogram during the grand launching of the Bagong Bayaning Magsasaka (BBM) Rice held at the National Irrigation Administration compound in San Nicolas, Ilocos Norte province on Sept. 13, 2024. “ Maraming salamat Pangulong Ferdinand R. Marcos Jr. sa inyong pagmamahal sa Region 1 lalong-lalo na sa bayan namin sa San Nicolas,” said Violeta Pasion, a resident Brgy.   18 Bingao in this town. The low-priced grains were sourced from the National Irrigation Administration’s (NIA) contract farming with irrigators' association members in the province. Along with Pasion, Epi...
Post a Comment
Read more