- September 8, 2020
- Posted by: admin
- Category: Daily News
- BANGKO SENTRAL ng Pilipinas (BSP) Governor Benjamin E. Diokno expects credit growth to pick up by end 2020, as consumer and business confidence is restored with easing lockdown measures over the next few months from Sep 20.
- In an interview with ABS-CBN News Channel on 7 Sep 20, Mr. Diokno said the slower loan growth seen in Jul 20 is “understandable” considering the economy is still dealing with a health crisis.
- Preliminary data released by the BSP showed bank lending growth stood at 6.7% y/y in Jul 20, the slowest pace of expansion since May 10 when it rose by 5%.
- Mr. Diokno said banks are also still in the process of reviewing their loan portfolio.
- The banking industry’s nonperforming loan (NPL) ratio stood at 2.53% as of end-Jun 20, higher than the 2.43% in May 20 and the 2.1% logged in 2019, BSP data showed. With this, lenders have increased provisions for credit losses by 48.5% year on year to PHP300.3bn in Jun 20.
- The BSP expects NPL ratio of the banking industry to rise to around 4.6% by end-Dec 20 due to the crisis.
- Amid record-low interest rates, analysts said consumer and business confidence have been battered by the pandemic which will continue to affect bank lending growth.
External Link : https://www.bworldonline.com/bsp-sees-loan-growth-to-pick-up-by-yearend/