By Lee C. Chipongian
The thrift banking sector reported an increase in its managed assets amounting to P44.898 billion as of end-June, up 4.82 percent from same time last year of P42.830 billion.
Data from the Bangko Sentral ng Pilipinas (BSP) show however that the mid-sized banks’ deposit in banks decreased by 15.44 percent year-on-year to P8.622 billion during the period, while net financial assets also declined by 16.57 percent to P31.699 billion.
Thrift banks’ trust accountabilities likewise fell to P9.435 billion or 14.99 percent lower compared to end-June of 2017’s P11.099 billion. Of these trust products, the UITF holdings totaled P4.420 billion, down by 16 percent year-on-year while pre-need trusts also declined by 13.52 percent to P678 million.
There are 54 thrift banks as of the end-August this year. Thrift banks include savings and mortgage banks, private development banks, stock savings and loan associations and micro finance banks. These banks account for about eight percent to 10 percent of the entire financial total resources.
The country’s top 10 thrift banks in terms of assets and loans are BPI Family Savings Bank, Philippine Savings Bank, RCBC Savings Bank, China Bank Savings and City Savings Bank. The list includes Philippine Business Bank, PNB Savings Bank, Sterling Bank of Asia, Bank of Makati and UCPB Savings Bank.
Overall, the banking system’s trusts, investment management, and fiduciary business was up by just 0.50 percent year-on-year as of end-June to P2.397 trillion. The big banks accounted for bulk of the total, or P2.352 trillion.
Last year the BSP issued new rules on trust entities’ management of clients’ asset and investment portfolio with an emphasis on more transparency. The changes on lending and investment disposition and the reporting requirements for discretionary and non-discretionary accounts.
The BSP in a report said the banking system remain resilient and supports the country’s long-term economic growth and financial health. The industry assets and deposits, for example, continue to grow in the second quarter. During this period, banks’ balance sheets showed steady growth in assets and deposits.