TACLOBAN CITY — Bank deposits in Eastern Visayas grew by 15.56 percent to PHP109.33 billion in 2017 as construction boom continues despite slowdown of post-disaster recovery projects in the region.
Bank deposits in the region managed to maintain a double-digit annual growth rate in the past five years despite the impact of the 2013 super typhoon Yolanda, based on records of the Philippine Deposit Insurance Corporation (PDIC).
Last year’s growth is higher than the 11.23 percent recorded in 2016, but lower than the average of 20 percent growth recorded from 2013 to 2015.
Regional Development Council banking sector representative Francisco Barredo said in a mobile phone interview Tuesday that consistent banking growth is largely driven by construction activities and business expansion.
“In the past, most construction activities were concentrated in Tacloban and other areas badly-hit by Yolanda. Last year, construction projects have spread out all over the region as government pours more investments on improving infrastructure,” Barredo told the Philippine News Agency (PNA).
Deposit liabilities in 2017 stood at PHP109.33 billion, higher than the PHP94.61 billion a year earlier. Deposit liabilities refer to money placed by an individual or corporation into a banking institution for safekeeping.
The PDIC banking statistics, posted on its website, showed that the total number of accounts grew by 8.44 percent from 868,080 in 2016 to 941,338 last year.
The number of banks increased to 225 in 2017 from 206 in the previous year. All provinces also posted significant growth in both accounts and deposits.
“The expansion of existing banks and opening of new banks in the region helped provide easy transfer of money and encouraged businesses to expand their operation outside major commercial districts,” Barredo added.
More banks have opened branches in Leyte, Eastern Samar, Samar, and Southern Leyte, according to PDIC.
Data showed that of the total PHP109.33-billion deposit portfolio, PHP65.56 billion were in Leyte province, PHP11.88 billion in Southern Leyte, PHP11.95 billion in Samar, PHP9.59 billion in Northern Samar, PHP7.64 billion in Eastern Samar, and PHP2.67 billion in Biliran.
The remarkable growth in Leyte is largely driven by operation of 49 banks in Tacloban City. The regional capital had PHP41.67 billion deposits as of end of 2016, higher than the PHP36.74 billion in 2017.
The number of accounts in the city rose to 310,781 in 2017 from 284,884 in the previous year.
The National Economic and Development Authority (NEDA) is upbeat that banking growth will continue in the next years due to President Rodrigo Duterte’s “Build, Build, Build” Program and private sector investments.
“To enhance the region’s capacity and growth potential, infrastructure development must be pursued. The stalwart performance we had in 2016, which was largely due to the remarkable growth of the construction subsector, should encourage us to push for more construction investments in the region,” said NEDA Regional Director Bonifacio Uy.
The official was referring to the 44.5 percent growth of construction subsector in 2016 due to the intensified implementation of public construction projects such as road widening and flood control projects, among others, on top of the remaining post-Yolanda reconstruction projects. (Sarwell Meniano/PNA)
