Local thrift banks are poised to sustain their growth momentum this year despite the slackening domestic economy.

Chamber of Thrift Banks president Pascual Garcia III said the industry would continue to act as conduit for economic development, especially in the countryside.

?We will continue to face more challenges in the coming months but we remain committed to provide the necessary financing support and assistance to our niche markets,? he said.

Garcia, who is also president of PSBank, said the thrift banking system remained in solid financial footing as shown by the industry?s double-digit growth, improved asset quality and acceptable level of capital position.

Total assets of thrift banks in the country inched up 0.9 percent to P482.13 billion as of end-September last year while deposit liabilities rose 11.41 percent to P385.66 billion.

Garcia said sustained growth in deposits mirrored the public?s increased confidence in the system and the banks? more aggressive marketing efforts.

He said total capital of thrift banks climbed 5.8 percent to P58.23 billion as of end-September last year from a year-ago level of P55.05 billion.

Thrift banks provide medium and long-term funds to the growth drivers of the economy, namely micro, small and medium scale enterprises, socialized and low-cost housing sector and countryside businesses.

Loan portfolio to the sector went up 20.28 percent to P285.96 billion while housing loans, mostly to Filipinos working overseas, reached P105.97 billion as of September last year. Lawrence Agcaoili