PH banks feed firms’ growing appetites with more dollar loans | Inquirer Business
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PH banks feed firms’ growing appetites with more dollar loans

By: - Reporter / @daxinq
/ 04:23 PM December 27, 2019

Dollar-denominated loans granted by banks rose to $17.8 billion, slightly higher by $338 million or 1.9 percent from the end-June 2019 level of $17.5 billion, as more loans were made than paid, according to the Bangko Sentral ng Pilipinas (BSP) on Friday (Dec. 27).

In a statement, the BSP said loans from banks’ foreign currency deposit units (FCDU) also increased by $1.7 billion or 10.8 percent from its level of $16.1 billion in September 2018.

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BSP Governor Benjamin Diokno, in the statement, said the growth in loans could be due to the higher working capital requirements of borrowing companies.

As of end-September 2019, the maturity profile of the FCDU loan portfolio remained predominantly medium- to long-term [or those payable over a term of more than one (1) year], which represented 77.5 percent of total, higher than the 76.7 percent level as of end-September 2018.

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The bulk of outstanding loans went to the following domestic industries: towing, tanker, trucking, forwarding, personal and other industries (23.7 percent); merchandise and service exporters (15.3 percent); public utility firms (8.3 percent); and producers/manufacturers, including oil companies (4.9 percent).

Gross disbursements in the third quarter of 2019 reached $17.3 billion and were 3.7 percent higher than the previous quarter’s figure due to increase in funding requirements of an affiliate of a branch of a foreign bank. Similarly, loan repayments were higher by 5.7 percent, resulting in overall net disbursements.

FCDU deposit liabilities stood at $41.1 billion as of end-September 2019, slightly lower by $212 billion (0.5 percent) from the end-June 2019 level of $41.3 billion, with the bulk (96.9 percent) continuing to be held by residents.

“These essentially constitute an additional buffer to the country’s gross international reserves,” the central bank said.

Year-on-year, FCDU deposit liabilities increased by $2.4 billion or by 6.1 percent from the end-September 2018 level of $38.8 billion.

Edited by TSB
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TAGS: BSP, Dollars, foreign currency, Investment
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