MANILA — The Bangko Sentral ng Pilipinas yesterday reported the savings and time deposits’ continued increase by 39.3% to P6.2 trillion compared to data from a year ago.
“The rapid growth may be attributed to the shift of depositors’ investments from the BSP’s SDA (Special Deposit Account) facility to bank deposits as a result of the fine-tuning of access of banks and trust departments/entities to the BSP SDA facility,” BSP said.
To flush out money parked in the SDA and invite investors to the country, the BSP cut the SDA’s interest rates last year by a total of 150 basis points to two percent.
It also mandated the removal of all singular investment management accounts in the facility.
During the first quarter, demand deposits increased by 31.2 percent while savings deposit also went up 36.6 percent.
Banks have increased resources by 24 percent in the first quarter from year-ago levels.
“The increase could be traced to the growth in loans, securities and other shares and other assets,” the BSP said.
With reports from Philippine Star