The Market Monitor Minding the Nation's Business
By Riza Lozada
Local banks’ foreign currency deposit units (FCDUs) have total deposits of $34.68 billion (P1.63 trillion) in the second quarter from $34.66 billion (P1.629 trillion) in the previous quarter, Bangko Sentral ng Pilipinas (BSP) data showed.
Of the total FCDU accounts, 97.3 percent are held by local residents, the data showed. The overall FCDUs’ loans-to-deposit ratio (LDR) increased to 34.8 percent from 34.6 percent a quarter ago.
BSP Governor Amando M. Tetangco Jr. said that, as of end-June, outstanding loans granted by FCDUs of banks stood at $12.1 billion (P568.7 billion), higher by $64 million (P3.008 billion) from the end-March level. Gross disbursements grew by 19.7 percent, with repayments up by 16.5 percent. Outstanding loans to residents were down by 0.3 percent, from $8.44 billion (P397 billion) to $8.42 billion (P395.74 billion) in the second quarter and represented 69.8 percent of total.
Sectors or industries that were the major beneficiaries of FCDU loans are merchandise and service exporters (24.9 percent); towing, tanker, trucking, forwarding, personal, and other individuals (20.6 percent); public-utility firms (9.7 percent); producers and manufacturers, including oil companies (5.7 percent); and management, holding and stock brokerage (2.5 percent).
The $800-million (P37.6-billion) balance went to other borrowers, including the public sector. Gross disbursements during the reference quarter rose from $9.4 billion (P441.8 billion) to $11.2 billion (P526.4 billion), representing a 19.7-percent increase. About 95.4 percent of loan releases had 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, representing 70.7 percent of total, while short-term accounts comprised 29.3 percent. Higher FCDU deposits represent additional buffer against external shocks, secondary to the country’s gross international reserves, the BSP reported.