MANILA — Deposits in Philippine banks grew by nearly double digits year-on-year to P22.04 trillion by the end of March 2026, reflecting sustained confidence in the banking system and increased savings among households and businesses, according to the Philippine Deposit Insurance Corporation (PDIC).

In its latest deposit growth report, the state deposit insurer said total deposits increased by P1.97 trillion, or 9.8%, from P20.1 trillion a year earlier.

The growth rate was nearly twice the 5.3% increase, equivalent to P1 trillion, recorded from March 2024 to March 2025.

The latest increase came a year after the maximum deposit insurance coverage (MDIC) was doubled to P1 million, effective March 15, 2025.

Individual depositors and private corporations accounted for more than three-fourths of the increase.

Individual deposits rose by P913.9 billion, representing 46.4% of the total increase, while private corporations added P606.6 billion, or 30.8%. The remaining 22.8% came from other institutional depositors, including government entities, banks and trust departments.

PDIC said the growth may have been supported by higher household and business income from employment, remittances and economic activity. Individuals and companies may also have opted to keep 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.

Time deposits lead growth

Time deposits accounted for the largest share of the year-on-year increase, rising by P896.1 billion, or 45.5% of the total growth.

PDIC said the increase may indicate that depositors were seeking higher returns and locking in prevailing interest rates ahead of anticipated rate cuts. Banks may also have encouraged the shift through competitive interest rates and other incentives.

Demand and negotiable order of withdrawal (NOW) deposits increased by P589.6 billion, or 29.9%, while savings deposits grew by P483.2 billion, or 24.5%.

The number of deposit accounts also expanded during the period.

By end-March, the banking system had 178.6 million deposit accounts, up by 27.2 million, or 18%, from the previous year.

Savings accounts accounted for almost all of the increase, with 26.9 million additional accounts, or 99% of the total growth in deposit accounts.

Nearly all accounts fully insured

The PDIC said fully insured deposit accounts increased by 27.1 million, or 18.2%, year-on-year to 176.5 million as of end-March.

This means 98.8% of domestic deposit accounts were fully covered by PDIC deposit insurance.

Total insured deposits also exceeded P5 trillion as of March 2026.

The PDIC said the continued growth in deposits, together with the broad coverage of deposit insurance, points to sustained confidence in the Philippine banking system following the increase in the maximum deposit insurance coverage to P1 million in March 2025.