THE Philippine banking system demonstrated resilience and stability in the first quarter of this year, despite the disruption caused by the 2019 coronavirus disease (Covid-19) pandemic and the adoption of stricter quarantine measures at the end of March, according to the BangkoSentral ng Pilipinas (BSP).
In its report titled “First Quarter 2021 Report on Economic and Financial Developments”, the central bank attributed its view to the country’s economic operations and financial transactions, which it said “continue to recover.”
The total resources of the banking system at the end of March 2021 amounted to 20 trillion pesos, almost unchanged from the end of December 2020 but higher by 6.6% than the previous year, he said in the report. report.
“As a percentage of GDP (gross domestic product), the total resources amounted to 112.3%,” he added.
The BSP added that total bank deposits reached 11.8 trillion pesos at the end of March 2021, up 7.9% from the previous quarter but mostly stable from the previous quarter.
Demand and savings deposits both increased quarter-on-quarter by 2.8% and 1.8%, respectively, over the same period, while term deposits decreased by 8.9%. Meanwhile, residents’ foreign currency deposits fell 0.5% year-on-year to 2,000 billion pesos.
He also pointed out the predominance of their financial sector, with universal and commercial banks accounting for around 92.6% of total banking resources.
“In terms of the number of head offices and branches / agencies, non-bank financial intermediaries have the largest physical network, made up mainly of pawn shops,” he added.
Bangko Sentral added that at the end of March 2021, the number of banking institutions (head offices) fell to 528, from 542 a year ago and 535 a quarter earlier.
“This indicates continued bank consolidation,” the central bank noted.
The operating network of the banking system (head offices and branches / branches) has grown to 13,089 branches over the same period, compared to 12,905 branches a year ago and 13,044 branches a quarter ago.