Peso- and dollar-denominated loans disbursed by the Bangko Sentral ng Pilipinas through its rediscounting window posted a double-digit growth in the first quarter as credit demand in the country remained robust. This developed as banks further stepped up their lending activities to generate more volume in the hope of offsetting the decline in earnings due [...]
With the cut in the yield on special deposit accounts (SDAs), the Bangko Sentral ng Pilipinas now wants banks to lend more to small entrepreneurs.
The Circular issued by the Bangko Sentral ng Pilipinas (BSP) that effectively removed the ceiling on interest rates does not give lenders the freedom to raise interest rates to the point of haemorrhaging borrowers, the Supreme Court clarified.
Outstanding loans issued by the country’s universal and commercial banks grew at a double-digit pace as of November 2012, on the back of rising loan demand from consumers and businesses.
Banks in the country can lend much more to consumers and businesses without resulting in the overheating of the economy.
Philippine lender Bank of the Philippine Islands said Wednesday it was in talks to acquire local rival Philippine National Bank to create potentially the country’s largest financial institution.
Bank of the Philippine Islands aims to double the loans it is extending to agribusiness in five years to support the sector’s growth.
Fitch Ratings said the exposure of the Philippine banking sector to risk of failure due to excessive lending remained low, but warned of the threat of a rising credit growth-related stress for banking sectors in the Asia-Pacific region.
Esquire Financing Inc., which caters to the credit needs of small and medium enterprises, expects its loan portfolio to triple this year on the back of an anticipated rise in investment activities of SMEs and a favorable economic climate.
Members of the country’s banking sector are keen on extending loans to contractors of big-ticket, public infrastructure projects and their suppliers, expressing their appetite for higher lending this year.
The country’s thrift banks are bracing for cutthroat competition brought about by the entry of more commercial banks into their turf, particularly in lending to consumers for their home and vehicle purchases.
Bangko Sentral ng Pilipinas Governor Amando Tetangco Jr. has urged thrift banks to lend more to micro, small and medium enterprises (MSMEs), stressing the crucial role of banks in helping achieve the country’s poverty reduction and economic development goals.
