Consumer loans (CLs) by universal, commercial (U/KBs) and thrift banks (TBs) stood at Php 902.6 billion at end-2014, a 25.1 percent increase from the Php 721.5 billion recorded a year earlier.
The end-2014 figure is also a 6.2 percent increase from the Php 849.6 billion posted a quarter earlier. This sustains the quarter-on-quarter growth in CLs that began in 2008.
The CLs at end-2014 is comprised of residential real estate loans, auto loans, credit card receivables, salary loans, and other CLs.
While consumer lending expanded, the ratio of the banks’ non-performing CLs to total CLs decreased to 4.8 percent at end-2014 from the 5.3 percent registered a year earlier. U/KBs and TBs also provisioned for 60.6 percent of their non-performing CLs as a cushion for potential credit losses.
As a percentage of total lending, the 15.9 percent CL exposure of domestic U/KBs and TBs would rank the lowest among the original five ASEAN economies. At end-2014, the CL exposure in Malaysia was at 57.8 percent followed by Indonesia at 28.3 percent; Thailand, 27.8 percent; and Singapore, 25.7 percent.
The Bangko Sentral ng Pilipinas (BSP) monitors consumer and other types of bank lending to ensure the banks’ adherence to high credit standards. This is essential to fostering financial stability, which is a key policy objective of the BSP.
View Table 1 | Table 2