Thrift Banks: Fueling Grassroots Growth And Nation-Building

The Philippines’ Thrift Bank Industry continues to serve as the quiet workhorse of inclusive economic growth in the country.

With over 2,600 branches nationwide—including micro-banking offices—thrift banks are bringing financial access to underserved communities across the Philippines.

Long known for its close-to-the-ground approach and community-centric banking, the industry is proving that nation-building doesn’t always need the flash of billion-peso IPOs.

Sometimes, it comes in the form of a ₱50,000 loan to jumpstart a sari-sari store or a low-interest housing loan for a young family’s first home.

According to the Chamber of Thrift Banks (CTB), the umbrella organization representing the country’s 36 thrift banks, the sector closed 2024 with a solid ₱1.10 trillion in total assets, marking a 6% increase from the previous year.

More notably, core lending grew by 14.7% to ₱777.28 billion—underscoring a sustained commitment to financial inclusion through lending focused on micro, small, and medium enterprises (MSMEs), consumer loans, and housing.

“We are pleased to report that the Chamber of Thrift Banks has continued to demonstrate remarkable growth and adaptability through the years,” said CTB President Mary Jane A. Perreras.

“From our origins in 1974 as a small industry group, the Chamber has evolved into a leading voice for thrift banks across the Philippines.”

The numbers speak for themselves. With ₱826 billion in deposit liabilities and a capital base of ₱174 billion, thrift banks have earned public trust and maintained a robust 17.88% capital adequacy ratio—well above regulatory requirements.

Their manageable 6.67% non-performing loan (NPL) ratio is a testament to sound credit risk management, even amid global headwinds. But beyond the statistics lies a more compelling story: thrift banks are powering the everyday economy.

Empowering MSMEs and Housing Dreams

In a country where MSMEs account for 99.6% of all registered businesses and provide over 60% of employment, access to affordable financing remains a critical bottleneck. This is where thrift banks excel.

By focusing lending efforts on sectors often underserved by larger commercial banks, thrift banks play an indispensable role in job generation and grassroots economic activity.

Affordable housing developments like this are made possible through thrift banks’ focused lending on residential financing for Filipino families. (Photo: Amaia Scapes Cabanatuan)

Their housing loan products, on the other hand, are enabling thousands of Filipino families to take their first steps toward financial stability and intergenerational wealth.

This dual focus—on MSMEs and housing—is not incidental. It is strategic. These sectors are pillars of inclusive growth, and thrift banks have positioned themselves as dependable allies in their development.

Going Digital, Staying Local

While grounded in community banking, thrift banks are not standing still. Digital transformation is no longer a luxury but a necessity, and CTB is guiding its members through this pivotal evolution.

Many thrift banks have invested in digital infrastructure upgrades, adopted robust cybersecurity protocols, and launched consumer education programs to bolster digital literacy.

Strategic collaborations with fintech firms and low-code software developers have enabled these banks—especially smaller players—to launch digital services more efficiently, from mobile apps to digital onboarding and micro-loans.

“Looking ahead, we will remain steadfast in promoting sound risk management, operational excellence, and sustainable growth,” Perreras affirmed.

“Our goal is to strengthen the thrift banking sector’s contribution to inclusive economic development, ensuring our members remain key providers of financial access in communities across the country.”

Policy Reforms and Regulatory Support

The sector’s steady rise has been bolstered by ongoing collaboration with regulators.

CTB played a key role in the Bangko Sentral ng Pilipinas (BSP)’s Technical Working Group for the Standard Business Loan Application Form (SBLAF), which has helped streamline MSME loan processing and provided incentives to early adopters.

In its regular engagements with the BSP’s Bank Supervision Policy Committee, the CTB continues to push for adjustments such as the proposed lowering of the Minimum Liquidity Ratio from 20% to 16%, aligning with the operational realities of thrift institutions.

The Department of Finance has also expressed strong support for the sector, recognizing its role in fostering a resilient and inclusive financial system.

Strengthening Through Convention

This July 15, 2025, the CTB will convene its 51st Annual Convention at Dusit Thani Manila, themed “Thrift Banks 2025: Resilience in Hybrid Banking.” 

Leaders from across the industry will gather at the Chamber of Thrift Banks’ annual convention to discuss hybrid banking, digital transformation, and inclusive growth. (Photo: CTB)

The event aims to gather industry leaders and innovators to chart a future course focused on hybrid service models, sustainable lending, and technological innovation.

BSP Deputy Governor Chuchi G. Fonacier is set to deliver the keynote address, a testament to the central bank’s continued recognition of thrift banks’ strategic importance.

Conclusion: Banking on the People

In a world often fixated on mega-deals and tech unicorns, the Philippine thrift banking sector reminds us that inclusive development is built from the ground up.

Whether it's funding the next local bakery, financing a community housing project, or ensuring financial services reach the farthest barangay, thrift banks are quietly but powerfully reshaping lives—and, by extension, the nation.

As the industry steps into its next chapter with ₱1.10 trillion in assets and thousands of branches (including micro-banking offices) across the archipelago, one thing is clear: the story of Philippine nation-building cannot be told without the humble, hardworking thrift bank at its heart.