FCDU lending decreases slightly in third quarter: BSP
Outstanding loans granted by Foreign Currency Deposit Units (FCDU) of banks stood at $15.67 billion as of end-September, recording a decrease of $44 million or by 0.3 percent from the end-June level of $15.71 billion.
The decrease in FCDU loans may be attributed to: (a) gradual move in easing credit parameters and net tightening of overall credit standards of lender banks resulting in an unchanged or deliberate lending operations and credit activity amid uncertainty in the economic outlook; and (b) borrowers’ reduced demand for FCDU loans in light of foreign exchange volatility and rising borrowing costs.
Year-on-year, outstanding FCDU loans decreased by $164 million (or by 1 percent) from the end-September 2021 level of $15.8 billion.
As of end-September, the maturity profile of the FCDU loan portfolio remained predominantly medium- to long-term debt (for those payable over a term of more than one year), which comprised 78.5 percent of total.
FCDU loans granted to residents comprised 63.7 percent of total outstanding FCDU loans. Of the $10 billion outstanding loans to residents, majority went to the following sector/industries: power generation companies ($2.7 billion or 27.4 percent); merchandise and service exporters ($2.4 billion or 24.4 percent); and management/holding and stock brokerage $1.2 billion or 12.3 percent).
Gross disbursements in the third quarter reached $14.6 billion and were 6.6 percent lower than the previous quarter’s figure mainly due to decrease in funding requirements of a foreign bank branch affiliate.
Similarly, loan repayments in the same quarter totaled $14.6 billion, an 8 percent decrease from the previous quarter’s figure. These resulted in overall net disbursement.
FCDU deposit liabilities stood at $45.8 billion as of end-September, lower by $838 million (or by 1.8 percent) from the end-June level of $46.6 billion.
The bulk of these deposits (97.3 percent) continue to be owned by residents, essentially constituting an additional buffer to the country’s gross international reserves.
Year-on-year, FCDU deposit liabilities decreased by $102 million (or by 0.2 percent) from the end-September 2021 level of $45.9 billion. BSP
