- November 11, 2020
- Posted by: admin
- Category: Daily News
- THE NONPERFORMING LOAN (NPL) ratio of Philippine banks rose for the eighth straight month in Sep 20, surging to its highest level in over seven years amid the economic slowdown.
- Data from the Bangko Sentral ng Pilipinas (BSP) showed the gross NPL ratio stood at 3.4% as of end-Sep 20, up from the 2.15% logged in 2019 and the 2.84% seen as of end-Aug 20. This was the highest since the 3.42% NPL ratio recorded in May 13.
- Bad loans stood at PHP364.672bn as of end-Sep 20, 60% higher than the PHP227.604bn in 2019, and 20% up from PHP304.997bn as of end-Aug 20.
- Loans are considered nonperforming once they are unpaid for at least 30 days following the due date. These are deemed to be risky assets because borrowers are unlikely to settle these loans.
- The industry’s NPL ratio is expected to rise to 4.6% by end-2020, based on BSP projections. It reached 17.6% in the aftermath of the Asian Financial Crisis in 2002.
External Link : https://www.bworldonline.com/bad-loans-hit-highest-level-in-over-seven-years/