BANKS’ DOLLAR LOANS UP IN 3RD QUARTER 2016

Foreign currency loans extended by local banks rose 3.2 percent quarter-on-quarter to $12.436 billion as of the end of the third quarter amid sustained robust economic growth, according to Bangko Sentral ng Pilipinas Governor Amando M. Tetangco Jr.

The foreign currency deposit units (FCDU) figure as of end of September was higher than the $12.054 billion in the quarter ending June as well as the $11.755 billion a year ago, BSP data showed.

“While gross disbursements declined by 7.2 percent, repayments were likewise lower by 10.3 percent, resulting in net lending by banks,” Tetangco said.

Outstanding FCDU loans to resident borrowers, which inched up 0.8 percent quarteron-quarter to $8.485 billion, accounted for 68.2 percent of the total.

The loans were infused into the following industries and sectors: Merchandise and service exporters ($3.2 billion); towing, tanker, trucking, and forwarding ($2.4 billion); public utility firms ($1.2 billion); producers/manufacturers, including oil companies ($700 million), and management/holding and stock brokerage ($500 million), the BSP said.

“The $500-million balance (or 3.9 percent) of loans to residents went to other borrowers including the public sector,” the BSP added.

As for gross disbursements, these declined to $10.4 billion in the third quarter from $11.2 billion in the previous quarter.

Of the loan releases, 91.2 percent have short-term maturities or with original maturities of up to a year.

As for the outstanding FCDU loans, 69.7 percent of the total were medium- to long-term loans, which were payable for over one year.

FCDU deposit liabilities, meanwhile, slightly rose to $34.9 billion in September from $34.7 billion last June.

“The bulk of deposits (97.2 percent) continued to be held by residents. FCDU deposits represent additional buffer (against external shocks), secondary to the country’s gross international reserves,” the BSP said.

Also, “the overall loans-to-deposit ratio increased to 35.6 percent from 34.8 percent,” it added.