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FCDU loans up slightly in Q4 2016


By Philippine News Agency

Outstanding loans granted by Foreign Currency Deposit Units (FCDUs) of banks reached USD 12.5 billion at end-December 2016, up USD 75 million or 0.6 percent from the end-September 2016 level after disbursements exceeded principal repayments, Bangko Sentral ng Pilipinas Governor Amando M. Tetangco, Jr. said Friday (March 31).

Credit: Shutterstock / (MANILA BULLETIN)

Credit: Shutterstock / MANILA BULLETIN

A year-on-year comparison also shows a growth of USD 0.3 billion as transactions resulted in overall net disbursements of USD 305 million with positive adjustments (due to exchange rate movements and other audit adjustments) of USD 12 million.

Outstanding loans to resident borrowers were down by 0.7 percent (from USD 8.48 billion to USD 8.42 billion) in the fourth quarter, representing 67.3 percent of total;

The following sectors/industries were the major beneficiaries: merchandise and service exporters (USD 3.1 billion or 25.1 percent of total); towing, tanker, trucking and forwarding (USD 2.5 billion or 20.1 percent of total); public utility firms (USD 1.3 billion or 10.3 percent of total); producers/manufacturers, including oil companies (USD 0.6 billion or 4.4 percent of total); and management/holding and stock brokerage (USD 0.5 billion or 3.8 percent of total).

The USD 0.5 billion balance (or 3.7 percent) were loans to other borrowers, including the public sector.

Gross disbursements during the reference quarter were higher from USD 10.4 billion in the previous quarter to USD 13.1 billion in the fourth quarter, with about 93.9 percent of loan releases having short-term (ST) maturities [or those with original maturities of up to one year].

Outstanding FCDU loans were mostly medium- to long-term [or those payable over a term of more than one year], which represented 70.4 percent of total; ST accounts comprised the 29.6 percent balance.

FCDU deposit liabilities increased from USD 34.9 billion in September to USD 35.9 billion by December 2016. The bulk of deposits (97.6 percent) continued to be held by residents. FCDU deposits represent additional source of foreign exchange liquidity for the economy. The overall loans-to-deposit ratio (LDR) decreased to 34.9 percent from 35.6 percent.

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