Bangko Sentral loans may rise 10pc in 2nd half
PARIS: Bank loans are expected to keep a healthy growth rate of 9 percent to 10 percent in the second half of the year, or at the same pace of expansion in the first half, Bangko Sentral Gov. Amando Tetangco Jr. said over the weekend. "It is hard to say, but maybe bank loans will have about the same pace of growth of 9 to 10 percent in the second half," Tetangco said.
He said corporate and consumer credit will continue to drive bank lending in the second half of the year, amid the strong recovery of the country's gross domestic product.
The economy posted a robust 7.9-percent expansion in the second quarter, sustaining the 7.8-percent growth in the first quarter, on the back of strong investments, construction and manufacturing.
Bangko Sentral earlier reported that outstanding loans of universal and commercial banks, excluding banks' reverse repurchase placements, rose 9.6 percent year-on-year to P2.18 trillion as of June.
"The sustained expansion of bank lending reflects the strengthening of domestic economic activity," Bangko Sentral said. Including the P180-billion placements in Bangko Sentral, the outstanding loans of universal and commercial banks amounted to P2.36 trillion in July, up by 5.5 percent year-onyear. Loans for production activities accelerated 9.3 percent to P1.956 trillion while loans for household consumption jumped 13 percent to P180.49 billion.
Tetangco said aside from bank loans, companies were also looking at the bond and equities market to raise funds for their investment projects. "So they have more options now. If you look at the size of the bond issues, these are going up in 2010 and will continue to grow," he said. -PB News