Why bank scale matters more than ever for depositors and businesses

As businesses grow and consumers entrust more of their savings to formal financial institutions, questions about bank strength and resilience are becoming increasingly important.

While conversations about banking often focus on digital innovation and customer experience, financial experts point to another factor that receives less public attention: a bank's ability to safeguard deposits, maintain liquidity, and continue supporting customers through changing economic conditions.

In the Philippines, the country's largest banks collectively manage trillions of pesos in deposits and play a critical role in supporting economic activity. Their scale offers insight into how capital strength, liquidity, and operational infrastructure contribute to financial stability.

One example is BDO Unibank, which reported more than P4.5 trillion in total deposits as of June 2026, making it the country's largest bank by assets and deposits.

For businesses managing increasingly complex financial operations, the issue goes beyond where money is deposited. It also involves whether a banking institution has the resources, infrastructure, and capability to support growth, process large transaction volumes, and remain reliable amid uncertainty.

For companies such as Miguelitos International Corp., banking relationships have become increasingly important as operations grow in scale and complexity.

A Philippine food manufacturer and exporter specializing in food and beverage premixes, culinary solutions, and commercial foodservice equipment, Miguelitos serves customers and business partners across local and international markets. As its operations continue to expand, the company requires banking services capable of supporting larger transaction volumes while maintaining security and reliability.

Company chief financial officer Micah Ela Aman said their banking requirements involve not only its own funds but also those of its franchise network spread throughout the country.

"With franchising, it's not just our company that's on the line; it's also our franchisees," Aman said. "Currently, we have between 400 and 600 branches in the Philippines alone, so security is very important to us, especially for bank-to-bank transactions."

"We need to make sure that the safety of our franchisees is there. At the same time, we're continuously expanding, which means a greater volume of transactions. We need to assure our franchisees and partners that these transactions remain secure."

Why size can matter in banking

Banking analysts often assess financial institutions through three key indicators: capital strength, liquidity, and asset quality.

While size alone does not guarantee safety, larger institutions typically have greater resources to absorb market disruptions, continue lending activities, invest in risk-management systems, and maintain operational continuity during periods of volatility.

BDO's financial position provides one example of what that scale looks like in practice.

As of the second quarter of 2026, the bank reported P5.9045 trillion in total resources, up 15 percent from P5.1266 trillion a year earlier. Deposits rose 13 percent to P4.5661 trillion, while total capital reached P655.9 billion.

The bank also reported P529.9 billion in liquid assets and P1.1771 trillion in investment securities as of June, with a loan-to-deposit ratio of 86.1 percent.

These figures do not suggest immunity from financial stress. Rather, they illustrate the scale of the balance sheet supporting an institution that serves millions of depositors and finances businesses across various sectors of the economy.

BDO's reported liquidity coverage ratio of 119.8 percent and capital adequacy ratio of 14.2 percent indicate the buffers it maintains against liquidity and capital risks. Its Common Equity Tier 1 ratio stood at 13.1 percent.

The bank also posted a nonperforming loan ratio of 1.64 percent and NPL coverage of 132.1 percent during the period.

For depositors, these measures matter because confidence in a bank depends not only on transaction security but also on the institution's ability to remain financially resilient while managing deposits, extending loans, and navigating changing market conditions.

A nationwide presence

Scale in banking is not measured solely by balance sheet size.

Operational reach also plays a significant role, particularly in a geographically diverse country where businesses and consumers require reliable access to financial services.

As of June 30, BDO had 2,010 branches and offices, including branch-lite units, more than 7,900 teller machines nationwide, and 15 international offices.

Its network spans Luzon, Metro Manila, the Visayas, and Mindanao, supporting millions of customers through a broad range of services, including corporate and institutional banking, consumer banking, transaction banking, treasury, trust banking, investment banking, and remittances.

For businesses operating across different regions, such infrastructure can be an important consideration when choosing a banking partner, providing multiple access points for payments, collections, financing, and day-to-day banking requirements.

Market data further reflects the role of large institutions within the country's financial system. Based on published statements of condition as of March 31, BDO ranked first among Philippine universal and commercial banks in total assets, gross customer loans, customer deposits, and assets under management.

Trust beyond the numbers

Even with strong financial metrics, trust is ultimately built through everyday customer experiences.

For businesses, banking relationships are often tested during periods of expansion, operational challenges, or urgent financial needs. A bank's financial strength may provide the foundation, but reliability and responsiveness are what sustain long-term confidence.

Aman said Miguelitos has benefited from responsive support from its banking team as the company continues to grow.

"We work with a specific branch in Makati, and they take really good care of us," she said. "They've been very supportive, and any assistance we need, they're very fast to act on."

Her experience highlights an often-overlooked aspect of banking: while financial strength provides the foundation, customer confidence is reinforced through service, responsiveness, and long-term relationships.

At the broader industry level, depositor protection extends beyond any single institution. The Philippine Deposit Insurance Corp. currently insures deposits up to P1 million per depositor, per bank, effective March 15, 2025.

As the financial system continues to evolve, depositors and businesses are increasingly looking beyond convenience and digital features when deciding where to place their funds. Financial strength, liquidity, operational reach, and risk management have become equally important considerations.

The experience of major Philippine banks such as BDO illustrates how scale, when supported by sound financial management and robust infrastructure, can contribute to confidence in the banking system.

For businesses and depositors alike, the issue is not simply how large a bank is, but whether it has the resources, discipline, and resilience to safeguard funds and support customers through changing economic conditions.