Philippine banking system grows despite pandemic; resources at 95% of GDP —DOF

The Philippines’ banking system grew faster than the country’s nominal gross domestic product (GDP) in May this year, and even accounted for 95.8% of the economy, data released by the Department of Finance showed.

In its economic bulletin, the DOF said the country’s banking system’s resources grew 7.4% to P18.741 trillion as of May 2020 from P17.451 trillion in May 2019.

This is faster than the country’s nominal GDP —the value of all goods and services produced calculated using current prices —which grew 5.3% amounting to P19.566 trillion.

The DOF said the banking system grew “despite the pandemic due to sound macroeconomic fundamentals that have boosted bank resources, loan portfolios and financing options.”

Meanwhile, the banking system’s deposit base amounted to P14.262 trillion, up 12% and accounted for 72.9% of GDP.

Gross loan portfolio stood at P10.816 trillion, up 7.3% and accounted for 55.3% of GDP.

“The existence of a variety of financing options will prepare the economy to meet the requirements of sectors that will need to replenish their working capital to resume normal operations,” the DOF said. —LDF, GMA News