THE Philippine banking system demonstrated resilience and stability in the second quarter of the year as the country’s economic operations and financial transactions continued to recover from the disruption caused by the Covid-19 pandemic and the quarantine, according to the Bangko Sentral ng Pilipinas (BSP).
Filipinos withdraw money from ATMs inside a mall in Makati. PHOTO BY JUSTINE RUTH BITANCOR
“During the period under review, bank balance sheets have supported the growth of assets and deposits,” he said in a report entitled “Second quarter 2021 report on economic and financial developments” released this weekend. end.
The central bank said the total resources of the banking system stood at 20.4 trillion pesos at the end of June of this year, up 1.8% and 6.9% from the end of March 2021 and the end of June. 2020, respectively.
“As a percentage of GDP (gross domestic product), the total resources amounted to 110.5%,” he continued.
The BSP added that total bank deposits reached 12.1 trillion pesos at the end of June this year, up 7.3 percent and 2.1 percent from levels a year ago. year and quarter, respectively.
Over the same period, sight deposits and savings deposits both increased 24% and 2%, respectively, while term deposits declined 0.8%. Foreign currency deposits by residents, meanwhile, rose 2.9 percent quarter-on-quarter to 2.1 trillion pesos.
The Bangko Sentral also noted that “banks have maintained their dominance in the financial sector, with universal and commercial banks (U / KB) accounting for around 92.3% of total bank resources”.
He said that non-bank financial intermediaries have the largest physical network, consisting mainly of pawn shops, in terms of the number of head offices and branches / agencies.
The number of banking institutions (head offices) fell to 523 at the end of June of this year, from 541 a year ago and 528 a quarter earlier, the central bank noted, indicating further bank consolidation.
There are 46 U / KB, 48 savings banks and 429 rural banks with head office.
Over the same period, the operating network of the banking system (headquarters and branches / branches) increased to 13,114, compared to 12,912 a year ago and 13,089 a quarter ago.