The results of the survey are shocking...
Only 2 out of 10 Filipino households have a bank deposit account
Php 6,875 Median balance of peso deposit account
0.375% Average interest rate on regular savings deposit accounts VS. 19% on Stock Funds (5-year return of a mutual fund tracking the Philippine Stock Exchange)
Less than 1% Percentage of households in Metro Manila that own stocks, bonds, mutual funds or government securities
Php 200 Average emergency savings
43.8% spent more than their income
51.5% spent as much as their income
4.6% spent less than their income
7 in 10 own their home, which includes living with parents
1 in 6 own real property other than their home
1 in 5 households receives financial assistance abroad
4 out of 10 says they will put any surplus money in the bank
Some policy implications that can be drawn from the results of the survey are: first, the BSP should continue to work toward a more inclusive financial system that reaches to those who are otherwise "excluded" or "unbanked".
Second, there is a need to continue to educate Filipino households on the advantages of saving in financial institutions and investing in various forms of financial instruments.
Third, there is a need to look into "shadow banking" transactions and related regulatory and supervisory approaches to monitor system-wide risk exposure to particular sectors without reducing credit opportunities for consumers.
Finally, the BSP should liaise with government pension systems to encourage membership, and regular/timely payment of premiums to national pension and retirement funds among household members who are self-employed and unemployed.
This is reposted from Learning Curve.