The Market Monitor Minding the Nation's Business
Bank deposits in the Philippines surged 9.8 percent year-on-year to ₱22.04 trillion as of end-March 2026, nearly doubling the previous year’s growth rate and signaling sustained confidence in the banking system.
The Philippine Deposit Insurance Corporation (PDIC) said total deposits increased by ₱1.97 trillion from ₱20.1 trillion a year earlier. The growth was almost twice the 5.3 percent, or ₱1 trillion, increase recorded between March 2024 and March 2025.
The latest figures came a year after the maximum deposit insurance coverage (MDIC) was doubled to ₱1 million effective March 15, 2025.
Individuals and private corporations accounted for more than three-fourths of the overall increase. Individual depositors added ₱913.9 billion, or 46.4 percent of the total increase, while private corporations contributed ₱606.6 billion, or 30.8 percent. Other institutional depositors, including government entities, banks and trust departments, accounted for the remaining 22.8 percent.
The stronger deposit growth may reflect higher household and business income supported by employment, remittances and business activity, with individuals and companies keeping more funds in banks for security and accessibility.
“The continued rise in deposit liabilities reflects the public’s sustained confidence in the banking system. Higher household and business deposits suggest that individuals and companies continue to view banks as safe, accessible, and reliable institutions for managing their funds,” PDIC President and CEO Roberto B. Tan said.
Time deposits led the growth, contributing ₱896.1 billion, or 45.5 percent of the year-on-year increase. The increase suggests that depositors sought higher returns by locking in funds amid prevailing interest rates and expectations of future rate cuts.
Demand/NOW deposits rose by ₱589.6 billion, or 29.9 percent, while savings deposits increased by ₱483.2 billion, or 24.5 percent, indicating broad-based growth across major deposit categories.
The number of deposit accounts also jumped to 178.6 million by end-March 2026, up 27.2 million, or 18 percent, from a year earlier.
Savings accounts accounted for nearly all of the increase, adding 26.9 million accounts, equivalent to 99 percent of the total growth in deposit accounts.
Fully insured accounts likewise rose 18.2 percent year-on-year, or by 27.1 million, to 176.5 million.
This means 98.8 percent of domestic deposit accounts were fully insured by the PDIC as of end-March 2026, underscoring the broad reach of deposit protection.
The PDIC said the sustained expansion in deposits, particularly among households and businesses, together with the continued growth in insured accounts, reflects continued confidence in banks following the increase in the MDIC to ₱1 million.