Total deposits increased by P1.97 trillion, or 9.8 percent, from P20.1 trillion in March 2025. The pace was nearly twice the 5.3-percent growth, equivalent to about P1 trillion, recorded between March 2024 and March 2025.
PDIC said the stronger growth came a year after the maximum deposit insurance coverage (MDIC) was doubled to P1 million per depositor per bank, effective March 15, 2025.
Households, firms
Individuals and private corporations accounted for more than three-fourths of the increase in deposits.
Individual depositors added P913.9 billion, representing 46.4 percent of the overall increase, while private corporations contributed P606.6 billion, or 30.8 percent.
The remaining 22.8 percent came from other institutional depositors, including government entities, banks and trust departments.
PDIC said the growth may reflect higher household and business income supported by employment, remittances and business activity, with depositors keeping more funds in banks for accessibility and security.
“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 in a statement.
Time deposits
Time deposits were the biggest contributor to the increase, rising by P896.1 billion and accounting for 45.5 percent of total year-on-year growth.
PDIC said the strong performance could indicate that savers were seeking better returns and locking in prevailing interest rates ahead of anticipated rate cuts.
Competitive rates and incentives offered by banks may have also encouraged depositors to shift funds into term products.
Demand and negotiable order of withdrawal deposits contributed P589.6 billion, or 29.9 percent of the increase, while savings deposits added P483.2 billion, or 24.5 percent.
The increases across the three major deposit types indicated broad-based growth in the banking system.
More accounts
The number of deposit accounts grew at an even faster pace.
The banking system had 178.6 million deposit accounts as of end-March, up by 27.2 million, or 18 percent, from a year earlier.
Savings accounts accounted for virtually all of the increase, adding 26.9 million accounts, equivalent to 99 percent of overall account growth.
At the same time, 176.5 million accounts were fully covered by deposit insurance, up 27.1 million, or 18.2 percent, year on year.
This meant 98.8 percent of domestic deposit accounts were fully insured by the PDIC under the P1-million maximum coverage.
Deposit protection
Total insured deposits exceeded P5 trillion as of March 2026, according to the state deposit insurer.
The PDIC said the continued expansion in deposits, combined with the broad reach of deposit insurance, reflected sustained public confidence in the banking system following the increase in the MDIC last year. —Ed: Corrie S. Narisma
