Philippine bank deposits rose 8.3% year-on-year to PHP22.4 trillion ($363bn) at end-June 2026, as central bank data published on June 30 showed sustained liquidity despite quarterly momentum cooling off, Business World reports.

Strong systemic liquidity underpins local credit stability, supporting sovereign debt absorption and corporate lending capacity amidst external market friction.

Growth decelerated from the 10.2% expansion recorded at end-March, creeping up just 0.8% q/q from PHP22.2 trillion. Registered account numbers surged 20.5% to 190.95mn, while distinct depositors grew 7.8% to 28.77mn.

"The growth in bank deposits reflects continued confidence in the Philippine banking system," said Union Bank of the Philippines Chief Economist Ruben Carlo O. Asuncion.

John Paolo R. Rivera, senior research fellow at the Philippine Institute for Development Studies, noted stable employment income and remittances drove the expansion.

Economic growth slowed to a post-pandemic low of 2.3% in the second quarter of 2026, impacted by a domestic flood control expenditure scandal and geopolitical shocks in the Middle East.

Asuncion cited base effects and softer economic activity for the quarterly deceleration. Rivera added that depositors redirected funds toward higher-yielding government debt securities.

Savings deposits remained the primary funding source, expanding 3.5% to PHP9.28 trillion. Standard savings hit PHP7.59 trillion, youth accounts reached PHP56.6bn, and other retail savings totaled PHP1.59 trillion.

"Maintaining healthy deposit growth will require keeping inflation under control," said Jonathan L. Ravelas, senior adviser at Reyes Tacandong & Co.

Basic deposit accounts (BDAs), aimed at expanding financial inclusion, reached 28.8mn users, up 7.9%. Total balances held in BDAs expanded 6% to PHP30.9bn.

Bangko Sentral ng Pilipinas (BSP) Deputy Governor Zeno Ronald R. Abenoja confirmed at a budget hearing on August 18 that 177 lenders offer these low-barrier products.

Demand deposits increased 8.5% to PHP6.22 trillion, while fixed-term certificate deposits grew 15.7% to PHP5.96 trillion.

Commercial and universal lenders dominated the sector, holding PHP20.82 trillion across 104.5mn accounts. Thrift institutions accounted for PHP1.06 trillion, while rural and cooperative banks saw deposits surge 24.7% to PHP345.7bn.

Digital banks led expansion metrics, with deposits surging 55.4% to PHP171.5bn across 44.1mn accounts.