Philippine Banking System Sees Robust Deposit Growth to P20.9 Trillion
The Philippine Deposit Insurance Corporation (PDIC) has announced a significant expansion in the country's banking sector, with total deposit liabilities reaching P20.9 trillion as of the end of September 2025. This marks a substantial increase of P1.4 trillion, or 7.3%, compared to the P19.5 trillion recorded during the same period in 2024.
Surge in Deposit Accounts and Key Contributors
Accompanying this financial growth, the total number of deposit accounts in Philippine banks soared by 28.3 million, representing a 20.4% rise to 166.6 million as of end-September 2025, up from 138.3 million a year earlier. Individual depositors played a pivotal role, contributing P764.2 billion in additional deposits, which accounted for 53.4% of the total increase. This pushed individual deposits to P10.2 trillion, an 8.1% year-on-year growth from P9.5 trillion in September 2024.
Private corporations also demonstrated solid performance, with corporate deposits increasing by P422.9 billion, or 29.5% of the total deposit growth. This resulted in a 6.9% year-on-year rise to P6.6 trillion as of end-September 2025, compared to P6.1 trillion in the prior year. The remaining increase of P244.5 billion came from other sources, including government deposits.
Impact of Enhanced Deposit Insurance Coverage
A key driver behind this growth was the adjustment of the maximum deposit insurance coverage (MDIC) to P1 million per depositor per bank, effective March 15, 2025. Following this change, P869.4 billion in deposits—or 60.7% of the total P1.4 trillion increase—was recorded from end-March 2025 to end-September 2025. Similarly, 15.3 million accounts, or 54.0% of the 28.3 million new accounts, were added during this period.
The PDIC further reported that estimated insured deposits saw a remarkable year-on-year increase of 42.1%, growing by P1.5 trillion to P5.1 trillion as of end-September 2025, up from P3.6 trillion in September 2024. Fully insured deposits reached P3.1 trillion, posting a 59.3% year-on-year increase of P1.1 trillion, while partially insured deposits amounted to P2.0 trillion, higher by 22% or P360.8 billion.
Rising Confidence and Historical Context
Consistent with this upward trend, the number of fully insured deposit accounts expanded by 29.6 million, or 21.9%, to 164.6 million as of end-September 2025, from 135.0 million in the same period in 2024. At the new MDIC level, 98.8% of all deposit accounts are now fully insured, up from 97.6% in September 2024, reflecting heightened depositor confidence.
Since its establishment in 1963, the PDIC has increased the MDIC six times, from an initial P10,000 to the current P1 million per depositor, per bank. The March 2025 adjustment marked a milestone, as it was the first instance where the Corporation utilized its enhanced authority under the amended PDIC Charter to raise the MDIC without requiring legislative approval.
