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FCDU Loans down by 3.1 percent in Q3 2015


Bangko Sentral ng Pilipinas Governor Amando M. Tetangco, Jr. announced today that as of end-September 2015, outstanding FCDU loans stood at US$11.8 billion, down by  US$375 million (3.1 percent) from the end-June 2015 level of US$12.1 billion, as repayments exceeded disbursements.  Except for loans to producers/manufacturers which slightly increased by 0.6 percent, FCDU loans granted in Q3 2015 to all other types of debtors declined compared to the previous quarter [exporter by 3.0 percent, public utilities by 2.3 percent, oil companies by 75.7 percent,  other borrowers/sectors (including non-residents) by 2.2 percent)].  Some borrowers may have shifted to domestic financing as peso loans showed a growth of 5.0 percent from PHP4.3 trillion to PHP4.6 trillion for the same period. 

Loans to resident borrowers represented 70.8 percent of total outstanding FCDU loans, with the following sectors/industries as major beneficiaries: public utility firms (16.8 percent), producers/manufacturers, including oil companies (6.8 percent), merchandise and service exporters (22.9 percent), management/holding and stock brokerage (7.2 percent) and towing, tanker, trucking, forwarding, personal & other individuals (12.8 percent).  The US$0.5 billion balance of outstanding loans (or 3.9 percent) went to other residents as well as government agencies/enterprises.

Gross disbursements during the reference quarter increased by 20.9 percent to reach US$15.8 billion compared to the previous quarter’s US$13.0 billion level.  The bulk of loan releases (93.9 percent) had ST maturities, and were largely for working capital and other ST funding requirements (89.2 percent of total ST disbursements).

The maturity profile of outstanding FCDU loans was as follows: medium- to long-term loans [or those payable over a term of more than one (1) year] represented 70.5 percent of total, and funded various projects.  Short-term (ST) accounts [or those with original maturities of up to one (1) year] comprised the 29.5 percent balance of the loan portfolio.

FCDU deposit liabilities rose from US$31.8 billion in the previous quarter to US$33.2 billion or by US$1.4 billion. The bulk (97.3 percent) of the deposits continued to be held by residents, and essentially constitute additional buffer to the country’s gross international reserves.  On the other hand, the loans-to-deposit ratio decreased from 38.1 percent to 35.4 percent in the third quarter of 2015 as a consequence of the higher rate of contraction of loans (3.1 percent) and increase in deposits (4.4 percent). 

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