Savings banks in a “strategic” position to further promote financial inclusion
Metro Manila (CNN Philippines, October 12) – The country’s savings banks are well positioned to help create a more financially inclusive society for Filipinos, the Bangko Sentral ng Pilipinas said on Tuesday.
“Savings banks are strategically positioned to be a catalyst for financial inclusion with an extensive network of 2,744 bank offices at the end of August 2021, spread across different regions of the country,” BSP Governor Benjamin said. Diokno, on the first day of the Chamber. of the Thrift Banks virtual convention this year.
Diokno also cited the industry’s sustained growth in assets and deposits, a strong capital position, adequate liquidity buffers and profitable operations that have contributed to its “healthy and stable” state amid the health crisis in the country. COVID-19.
In August, the savings bank sector’s total assets stood at 1.19 trillion yen, a growth of 7% year-on-year.
At the same time, deposit liabilities increased 8.8% to 940.8 billion yen during the period. The BSP chief said this was “strongly indicative of the public’s continued confidence in the industry”.
Total capital of savings banks reached 166.45 billion yen, up 4 percent from August last year. Their solvency ratio also stands at 18.8%, well above the minimum requirement of 10% set by the BSP.
“We are optimistic that the savings banking industry is well equipped to withstand the risk posed by the COVID-19 pandemic,” Diokno said, adding that the strong performance of the sector and the country’s economic recovery will serve as a solid foundation. for savings banks under the new economy.
Diokno also cited the central bank’s efforts to further assist the sector, such as lowering the minimum liquidity ratio for autonomous, rural and cooperative savings banks from 20% to 16% until the end of the l ‘year.
He also encouraged savings banks to take advantage of the incentives provided by the Financial Institutions Strategic Transfer (FIST) law to manage degraded asset levels, increase liquidity and meet the financial needs of clients.
For his part, the president of the Chamber of Savings Banks, Cecilio San Pedro, affirmed that they will continue to fulfill their mandate of coordinating the efforts of their members in accordance with the objective of the central bank to make the financial system national a “catalyst for all Filipinos”.
“COVID-19 has accelerated customer demand for digital solutions as customers now expect full service anytime, anywhere. There is now a need for the sector to strengthen its platforms, security and service channels, ”he said.