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Bangko Sentral ng Pilipinas - BSP-FCDU Lending Declines Further in Q2 2021.

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ENPNewswire-October 1, 2021--Bangko Sentral ng Pilipinas - BSP-FCDU Lending Declines Further in Q2 2021

(C)2021 ENPublishing - http://www.enpublishing.co.uk

Release date- 30092021 - Bangko Sentral ng Pilipinas Governor Benjamin E. Diokno announced today that as of end-June 2021, outstanding loans granted by Foreign Currency Deposit Units (FCDU) of banks stood at US$16.2 billion, lower by US$170 million (or by 1.0 percent) than the end-March 2021 level of US$16.3 billion as principal repayments exceeded disbursements.

The decline in FCDU loans may be attributed to: (a) lender banks' tightened credit standards resulting in a slowdown in their lending operations and credit activity; (b) the borrowers' reduced working capital and funding requirements relative to pre-pandemic levels amid economic slowdown; and (c) availability of other sources of funding.

Year-on-year, outstanding FCDU loans decreased by US$1.8 billion (or by 10.0 percent) from the end-June 2020 level of US$18.0 billion.

As of end-June 2021, the maturity profile of the FCDU loan portfolio remained predominantly medium- to long-term debt [or those payable over a term of more than one (1) year], which represented 78.9 percent of total, slightly lower than the 79.9 percent level as of end-June 2020.

Of the total 67.1 percent outstanding loans to residents, 40.2 percent went to the following resident industries: power generation...

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