Total deposits in the Philippine banking system experienced a significant surge, growing by 7.3 percent year-on-year to reach P20.9 trillion as of the end of September 2025. This robust expansion was primarily driven by increased inflows from both individual and corporate depositors, as reported by the Philippine Deposit Insurance Corp. (PDIC).
Deposit Growth and Account Expansion
According to the PDIC report, deposit liabilities increased by P1.4 trillion from the P19.5 trillion recorded during the same period in 2024. This growth was accompanied by a sharp rise in the number of deposit accounts, which expanded by 20.4 percent, or 28.3 million accounts, to 166.6 million as of end-September 2025, up from 138.3 million a year earlier.
Individual Depositors Lead the Way
Individual depositors accounted for the bulk of new inflows, contributing P764.2 billion or 53.4 percent of the total increase in system-wide deposits. Individual deposits rose 8.1 percent year-on-year to P10.2 trillion from P9.5 trillion, highlighting strong consumer confidence and savings behavior.
Corporate Contributions and Other Sources
Private corporations also posted solid gains, with corporate deposits increasing by P422.9 billion, or 29.5 percent of total deposit growth. This translated to a 6.9 percent rise in corporate deposits to P6.6 trillion from P6.1 trillion a year ago. The remaining P244.5 billion increase came from other sources, including government deposits.
Impact of Increased Deposit Insurance Coverage
PDIC noted that following the adjustment of the maximum deposit insurance coverage (MDIC) to P1 million per depositor per bank effective March 15, 2025, P869.4 billion — or 60.7 percent of the total P1.4 trillion increase — was recorded between end-March and end-September 2025. Of the 28.3 million additional deposit accounts posted year-on-year, 15.3 million or 54 percent were opened during the same six-month period after the higher coverage took effect.
Surge in Insured Deposits
Estimated insured deposits jumped 42.1 percent to P5.1 trillion as of end-September 2025, up by P1.5 trillion from P3.6 trillion in the same period last year. Fully insured deposits reached P3.1 trillion, marking a 59.3 percent year-on-year increase of P1.1 trillion. Partially insured deposits rose 22 percent, or P360.8 billion, to P2.0 trillion.
Account Coverage and Historical Context
The number of fully insured deposit accounts also climbed by 29.6 million, or 21.9 percent, to 164.6 million from 135.0 million a year earlier. At the new P1-million MDIC level, 98.8 percent of all deposit accounts are now fully insured, up from 97.6 percent in September 2024. Since its creation in 1963, PDIC has raised the deposit insurance ceiling six times, from an initial P10,000 to the current P1 million per depositor per bank. The March 2025 adjustment marked the first time the state insurer exercised its enhanced authority under the amended PDIC Charter to increase the coverage without the need for new legislation.
