OUTSTANDING LOANS released by banks’ foreign currency deposit units (FCDU) increased at end-June, the Bangko Sentral ng Pilipinas (BSP) reported.
FCDU loans inched up by 0.9% to $15.928 billion as of June from $15.782 billion at end-March, the BSP said in a statement late on Tuesday. This was also up by 1.9% from $15.633 billion a year prior.
FCDUs are units of local banks or local branches of foreign banks authorized by the BSP to service transactions involving foreign currencies, including deposits and loans. Resident and nonresident borrowers, including individuals and businesses like importers, use these loans for their foreign currency payables or needs.
The end-June tally reflected $6.76 billion in new loans as well as $6.64 billion in loan payments made in the quarter.
The BSP said that 79% or $12.577 billion of banks’ outstanding FCDU loans in the period was medium- to long-term, or those payable in a year or more. This was lower than the $12.182 billion (77.2% of the total) seen in the previous quarter.
Meanwhile, short-term debt made up the remaining 21% at $3.35 billion, lower than the end-March tally of $3.6 billion (22.8%).
By borrower type, FCDU loans granted to Philippine-based borrowers reached $10.117 billion or 63.5% of the total. The top borrowers based in the Philippines were merchandise and service exporters ($2.52 billion or 24.9%); towing, tanker, trucking, forwarding, personal and other industries ($2.22 billion or 22%); and power generation companies ($1.89 billion or 18.7%).
On the other hand, foreign currency loans extended to nonresidents stood at $5.811 billion, comprising a 36.5% share.
Central bank data also showed that local banks accounted for 85% or $13.54 billion of the total outstanding FCDU loans as of June, and commercial banks extended the most loans at $13.52 billion (84.9%). Meanwhile, foreign banks lent $2.388 billion or 15% of the total.
On the other hand, banks’ FCDU deposit liabilities rose by nearly 3% to $60.669 billion as of June from $58.919 billion the previous quarter and by 10% from $55.156 billion a year prior.
This brought the FCDU loans-to-deposits ratio to 26.3% at end-June, down from 26.8% as of March and 28.3% a year ago. — Katherine K. Chan
