Thrift banks remain committed to their mission

Thrift banks remain committed to their niche markets and continue to help develop the various sectors considered to be part of the growth drivers of the economy. The industry continues to work towards revitalizing the economy by providing financial assistance to these vital sectors of the economy:

FINANCIAL SUPPORT FOR MSMEs

Over the years, the thrift banking industry has supported and reached out to the depositors and borrowers, especially in the countryside.

Although the thrift-banking sector makes up about only seven percent of the total resources of the banking system, thrift banks have focused their resources and provided solutions to the difficulties associated with micro-, small- and medium-scale businesses. As of September 30, 2018 thrift banks have increased lending to these micro, small and medium businesses.

Figures from the Bangko Sentral ng Pilipinas (BSP) affirm the commitment of thrift banks to the MSME sector.

Thrift banks continued to provide support to the domestic economy given the broad-based growth in loans and investment inflows to key economic sectors.

By economic sector, real estate activities (housing) received the largest TLP share at 31.81 percent of the industry’s loan portfolio or P291.35 billion as of December 2018. This shows the viability of the middle-income housing projects. Loans to Individual for consumption purposes registered at 35.77 percent share of TLP or P327.62 billion while loans for Wholesale, Retail Trade and Repair of Motor Vehicles/Motorcycles is at 8.4 percent or P76.92 billion. These three sectors accounted for the bulk of the industry’s total loan portfolio at 75.98 percent.