THE Philippine Deposit Insurance Corp. (PDIC) fully covered 96.7% or 78.2 million out of 80.9 million accounts as of the first quarter of 2021, it said in a statement on Thursday. 

This was 6.8% higher compared to the 73.3 million deposit accounts that were fully covered by the PDIC in the same period of 2020. 

“We are optimistic that the depositing public will continue trusting banks and for bank deposits to sustain their steady growth to help fuel the economy. The PDIC, as a financial safety net, will always remain committed to its pursuit of depositor protection and in promoting financial stability in the country through responsive and effective services,” PDIC President and CEO Roberto B. Tan said in the statement.  

In terms of value, total insured deposits rose 5.9% to P3 trillion at end-March from P2.9 trillion a year earlier. More than half (55.8%) or P1.7 trillion of these funds were fully covered. Meanwhile, 44.2% or P1.3 trillion were partially insured of up to the maximum deposit insurance of P500,000.  

Fully insured and partially insured deposits deposits made up 11.3% and 9% of the total deposits, respectively, which grew 7.8% to P15 trillion as of March 2021 from P13.9 trillion a year earlier. The increase in deposits came on the back of a 6.8% growth in the number of deposit accounts to 80.9 million from 75.8 million. 

Broken down, deposit accounts with balances between P100,000 to P500,000 climbed by 7.1% to 5.1 million from 4.8 million last year.  

Meanwhile, deposits valued at P100,000 and below rose 6.8% to 73.2 million from 68.5 million accounts. 

Deposits that were beyond the maximum deposit insurance of P500,000 increased by 6.6% to 2.7 million from 2.5 million accounts a year earlier. 

Data showed savings and demand deposit accounts made up 77.3% of total domestic deposits at P7.3 trillion and P4.3 trillion, respectively. Time deposits and long-term negotiable certificates of deposit (LTNCD) accounted for 22.7% at P3.4 trillion.  

The PDIC noted that the economic impact of the crisis showed how liquidity became a priority for many depositors. 

“This is evident in the 11.3% year-on-year contraction in the total time deposit and LTNCD balances, and in the growth rates for savings and demand/now deposits at 15.3% and 14.9%, respectively,” it said. — LWTN 

RELATED ARTICLESMORE FROM AUTHOR