Bangko Sentral ng Pilipinas Governor Amando M. Tetangco, Jr. announced today that as of end-June 2016, outstanding loans granted by foreign currency deposit units (FCDUs) of banks stood at US$12.1 billion, higher by US$64 million from the end-March 2016 level. While gross disbursements grew by 19.7 percent, repayments likewise increased by 16.5 percent.
Outstanding loans to resident borrowers were down by 0.3 percent (from US$8.44 billion to US$8.42 billion) in the second quarter and represented 69.8 percent of total. The following sectors/industries were the major beneficiaries of these loans: merchandise and service exporters (24.9 percent), towing, tanker, trucking, forwarding, personal & other individuals (20.6 percent), public utility firms (9.7 percent), producers/manufacturers, including oil companies (5.7 percent), and management/holding and stock brokerage (2.5 percent). The US$0.8 billion balance went to other borrowers, including the public sector.
Gross disbursements during the reference quarter rose from US$9.4 billion to US$11.2 billion (or by 19.7 percent). About 95.4 percent of loan releases had short-term (ST) maturities [or those with original maturities of up to one (1) year].
Outstanding FCDU loans were mostly medium- to long-term [or those payable over a term of more than one (1) year], representing 70.7 percent of total, while ST accounts comprised 29.3 percent.
FCDU deposit liabilities increased slightly from US$34.66 billion in the previous quarter to US$34.68 billion in June 2016. The bulk of deposits (97.3 percent) continued to be held by residents. The overall loans-to-deposit ratio (LDR) increased to 34.8 percent from 34.6 percent.
Higher FCDU deposits represent additional buffer against external shocks, secondary to the country’s gross international reserves.