Insured deposits up 41 percent in 2025 – PDIC

Total insured deposits in the Philippine banking system surged by about 41 percent to P5.2 trillion in 2025, driven largely by the doubling of deposit insurance coverage and sustained growth in bank deposits, according to data from the Philippine Deposit Insurance Corporation (PDIC).

The increase, equivalent to roughly P1.5 trillion from the P3.7 trillion level in 2024, exhibits the impact of the expanded maximum deposit insurance coverage (MDIC), which was raised to P1 million from P500,000 effective 15 March last year.

The PDIC said the higher insurance ceiling accounted for the bulk of the growth in insured deposits, as a greater share of savings became eligible for protection. The policy shift was aimed at reinforcing depositor confidence and aligning coverage with rising deposit levels and inflation.

Earlier PDIC estimates showed insured deposits would reach about P4.8 trillion—equivalent to 24.5 percent of total deposits—under the new coverage cap, up from 18.3 percent under the previous P500,000 limit. As a result, the number of fully insured accounts climbed to about 169.2 million as of end-2025, up over 20 percent year-on-year.

The expansion highlights the dominance of small depositors in the banking sector, with the enhanced coverage ensuring that the vast majority of accounts are fully protected under the deposit insurance system.

Recent data from the Bangko Sentral ng Pilipinas saw total assets of the country’s banking sector rising 8.3 percent year-on-year to P29.19 trillion in February 2026, driven largely by higher loans and receivables, alongside gains in investment portfolios, indicating continued financial intermediation despite global uncertainties.

Beyond policy adjustments, underlying deposit growth also contributed to the increase. Total domestic deposits rose to P21.7 trillion, up 7.1 percent year-on-year, with individual depositors accounting for more than half of the expansion, followed by private corporations.