Lending by PH banks’ foreign currency deposit units declined 2.7% in Q2

Top sectors who took out loans are merchandise and service exporters, and power companies.

Outstanding loans granted by foreign currency deposit units (FCDU) of Philippine banks stood at $15.63b as of end-June 2024, lower by 2.7% or by $438.58m by end-March.

Compared to Q2 2023, outstanding FCDU loans were 1.6% higher, according to data from the Bangko Sentral ng Pilipinas (BSP).

The maturity profile of the FCDU loan portfolio remained predominantly medium- to long-term— or those payable over a term of more than one (1) year— which comprised 76.7% of total in Q2.

FCDU loans granted to residents was $9.48b or 60.7% of the total loans.

Majority went to merchandise and service exporters ($2.49b or 26.2%), power generation companies ($2.12b or 22.4%); and towing, tanker, trucking, forwarding, personal and other industries ($1.68b or 17.7%).