State deposit insurer Philippine Deposit Insurance Corporation (PDIC) reported that bank deposits increased nearly double-digit at 9.8 percent year-on-year to P22.04 trillion by end-March 2026, signaling sustained confidence in the Philippine banking system and stronger savings by households and businesses.
In its latest report on deposit growth, the PDIC said that the increase marks a notable acceleration in deposit growth, a year after the maximum deposit insurance coverage (MDIC) was doubled to P1 million effective March 15, 2025.
Total deposits rose by P1.97 trillion, or by 9.8 percent, from P20.1 trillion as of end-March 2025, or almost twice the 5.3 percent growth, equivalent to P1 trillion, recorded between March 2024 and March 2025.
Individual depositors and private corporations accounted for more than three-quarters of the overall increase, highlighting stronger cash holdings among households and businesses.
Individuals added P913.9 billion, or 46.4 percent of the total increase, while private corporations contributed another P606.6 billion, or 30.8 percent. The remaining 22.8 percent came from other institutional depositors, including government entities, banks and trust departments.
The growth may reflect higher household and business income, supported by employment, remittances and business activity. With more cash available, individuals and companies may also have chosen to keep a larger share of their funds in banks for convenient access 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 biggest driver of growth, accounting for P896.1 billion, or 45.5 percent of the year-on-year increase.
The strong performance suggests that savers were looking for better returns and may have locked in prevailing interest rates ahead of anticipated rate cuts. Banks may also have encouraged the shift by offering competitive rates and incentives to attract more stable funding.
Demand/NOW deposits contributed P589.6 billion, or 29.9 percent, while savings deposits added P483.2 billion, or 24.5 percent. These figures point to broad-based growth across the banking system.
The number of deposit accounts likewise increased year-on-year. By end-March 2026, the banking system had 178.6 million deposit accounts, up by 27.2 million, or 18 percent, from a year earlier.
Savings accounts drove the bulk of the increase, adding 26.9 million accounts and accounting for 99 percent of the overall growth.
The deposit insurance system also continued to cover the majority of deposit accounts.
Fully insured accounts rose 18.2 percent year-on-year, or by 27.1 million, to 176.5 million as of end-March 2026, highlighting that 98.8 percent, or almost all domestic deposit accounts, were fully insured by the PDIC, underscoring the broad reach of deposit protection.
The latest figures indicate sustained growth in bank deposits, supported by higher household and corporate savings, and stronger demand for term deposit products.
As of March 2026, total insured deposits exceeded P5.0 trillion, while nearly all domestic deposit accounts were fully insured under the enhanced deposit insurance coverage.
The continued expansion in deposits, together with the broad coverage of deposit insurance, reflects sustained public confidence in the banking system following the increase in the MDIC to P1 million on March 15, 2025.
