The total loanable funds generated by the banking system increased by 2.7 percent to P1,065.6 billion from last quarter’s P1,037.7 billion and by 9.3 percent from the previous year’s P974.6 billion.
Compliance with the 25 percent credit requirement of the banking system went up to 26.5 percent of the total loanable funds, even as Commercial Banks (KBs) and Thrift Banks (TBs) fell short at 18.8 percent and 22.7 percent, respectively. Rural Banks (RBs), on the other hand, largely exceeded the 25 percent credit at 46.6 percent as well as with both the 10 percent agra credit requirement at 17.2 percent and 15 percent agri credit requirement at 29.4 percent while Universal Banks’ (UB) ratio leveled at 27.2 percent. Compliance of the banking system with the 10 percent Agra Credit ratio requirement fell at 9.4 percent from last quarter’s 9.7 percent as all industries reported a decrease in compliance except RBs whose compliance increased at 17.2 percent. Consistently, the banking system overcomplied with the 15 percent Agricultural Credit requirement at 17.2 percent. The undercompliance of KBs at 11.4 percent and TBs at 8.4 percent was offset by the overcompliance of UBs at 18.8 percent and RBs at 29.4 percent.
Direct lending was still preferred with the 25 percent credit requirement as direct loan availments reached P192.7 billion compared to alternative compliance amounting to only P89.7 billion.
The use of alternatives to comply with the 10 percent agra credit requirement reached P71.6 billion or 25.4 percent of total compliance compared to direct lending of only P28.0 billion or 9.9 percent of total compliance.