Philippines expects loan growth in 2012

The Bankers' Association of the Philippines (BAP) believes demand for loans will grow by 15% to 20% this year because of the country’s sound macroeconomic fundamentals.

BAP president Aurelio Montinola III said an appetite for lending is based more on business optimism.

“We are confident that the economy will expand this year and it will definitely be better than last year," he said.

For the first half, demand for loans should grow by 10% to 15%, said Montinola, who is also president and CEO of Ayala-controlled Bank of the Philippine Islands.

Since only 25% of Filipinos have bank accounts, Montinola believes banks can grow their businesses by 25%.