Diokno cites thrift banks’ contribution to PH economy

MANILA — Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno on Friday highlighted the importance of the thrift banking industry in the sustained robustness of the Philippine economy.

In his speech during the Chamber of Thrift Bank (CTB) convention in Makati City, Diokno said the sound and stable banking sector remains among the country’s “key pillars of strength.”

“This industry has been an enabler of economic development by encouraging savings and extending credit to crucial sectors of the economy,” he said.

Citing BSP data, Diokno said the thrift banking sector’s resources amounted to PHP1.2 trillion as of end-January this year, up by 7 percent against year-ago’s level.

Consumers loans also went up to PHP562 billion from last year’s PHP530 billion.

These loans were extended to productive sectors, Diokno said.

Net profits have also increased, ensuring the industry’s profitability, he pointed out.

BSP data show that as of end-December 2018, the industry’s past due ratio stood at 8.07 percent, lower than the previous month’s 8.11 percent; restructured loans to total loan portfolio ratio at 0.55 percent from month-ago’s 0.54 percent; and gross non-performing loan ratio at 5.26 percent from month-ago’s 5.23 percent.

Diokno said the sector remains well-capitalized, with capital adequacy ratio on solo basis at 15.9 percent as of end-September last year.

“All these numbers that were mentioned showed thrift banks’ critical role in supporting the country’s inclusive economic growth,” he added. (PNA)