The Philippines' domestic banking sector still managed to post an 8.6-percent growth in its assets last year, despite the economic effects of the COVID-19 pandemic.
PH banking sector managed to grow their assets despite effects of COVID-19 pandemic
DESPITE the global economic downturn caused by the COVID-19 pandemic last year, the Philippines' domestic banking sector still managed to grow their assets, the Bangko Sentral ng Pilipinas (BSP) said.
In a report, the BSP said total resources of Philippine banks hit a record high of P20 trillion last year, P1.29 trillion or 8.6 percent higher than the P18.71 trillion recorded in 2019.
The total assets of big banks or universal and commercial banks grew by 7.5 percent to P18.51 trillion in 2020 from P17.22 trillion in 2019, while that of mid-sized banks or thrift banks slipped by about one percent to P1.19 trillion in 2020 from P1.2 trillion in 2019.
The total resources of small or rural bank inched up by 3.4 percent to P301 billion as of end-September last year from P291 billion in the same period in 2019.
The industry’s total resources continued to grow impressively, accounting for more than 90 percent of the country’s gross domestic product (GDP).
“While the full impact of the pandemic is still unfolding, the good news is that the Philippine banking system is expected to withstand the impact of the pandemic,” BSP governor Benjamin Diokno said.
“The financial system is in a strong position to weather the significant economic effect caused by the COVID-19 pandemic and support the country’s economic recovery,”. (ONT)