Philippine bank deposits hit PHP 22.04 trillion in Q1 2026

Philippine bank deposits rose 9.8% year on year to PHP 22.04 trillion by the end of March 2026, signaling continued growth in funds held by households, businesses, and other depositors, according to the Philippine Deposit Insurance Corporation.

For depositors, the expansion came with broad protection under the country’s deposit insurance system: 176.5 million accounts, or 98.8% of domestic deposit accounts, were fully insured as of end-March, while total insured deposits exceeded PHP 5.0 trillion.

The maximum deposit insurance coverage has been PHP 1 million per depositor, per bank since March 15, 2025, when the ceiling was doubled from PHP 500,000. PDIC said the higher limit was intended to strengthen depositor protection and confidence in the financial system.

The latest increase marked a sharp acceleration from the previous year, with total deposits rising by PHP 1.97 trillion, or 9.8%, from PHP 20.1 trillion at the end of March 2025.

That was almost twice the 5.3% growth, equivalent to PHP 1 trillion, recorded between March 2024 and March 2025.

Individual depositors and private corporations accounted for more than three-quarters of the overall increase, indicating that most of the new funds came from households and businesses.

Individuals added PHP 913.9 billion, accounting for 46.4% of the increase.

Private corporations contributed another PHP 606.6 billion, or 30.8% of the overall gain.

The remaining 22.8% 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.

The agency also said individuals and companies may have opted to keep a larger share of available cash in banks because of their 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.

Time deposits were the largest source of deposit growth, increasing by PHP 896.1 billion and accounting for 45.5% of the year-on-year increase.

PDIC said the strength in time deposits suggests savers were seeking better returns and may have locked in prevailing interest rates as monetary policy was easing.

The Bangko Sentral ng Pilipinas had cut its target reverse repurchase rate by 25 basis points to 4.25% on Feb. 19, 2026, after previous policy easing, providing context for the shift toward term deposits.

PDIC also said banks may have encouraged the movement into time deposits by offering competitive rates and incentives to secure more stable funding.

Demand and NOW deposits contributed PHP 589.6 billion, or 29.9%, to the overall deposit increase.

Savings deposits added PHP 483.2 billion, or 24.5%, indicating that deposit growth was spread across major account types rather than concentrated solely in term products.

The number of deposit accounts also increased sharply, reaching 178.6 million by the end of March 2026.

The total was 27.2 million accounts, or 18%, higher than a year earlier.

Savings accounts accounted for nearly all of the additional accounts, increasing by 26.9 million and representing 99% of the overall account growth.

Fully insured accounts increased by 27.1 million, or 18.2% year on year, to 176.5 million.

That meant 98.8% of domestic deposit accounts were fully covered by PDIC, giving nearly all account holders complete protection within the statutory insurance limit.

The combination of higher deposits, increased use of time-deposit products, and wider account ownership points to continued expansion in the banking system’s deposit base, while the PHP 1 million insurance ceiling provides a larger financial safety net for depositors if an insured bank fails.

PDIC was established on June 22, 1963, under Republic Act 3591 to protect depositors and help maintain stability in the financial system.

The state deposit insurer is an attached agency of the Bangko Sentral ng Pilipinas and is a member of the Financial Sector Forum, the Financial Stability Coordination Council, and the Financial Inclusion Steering Committee.