FCDU loans up 11% in first six months — Bangko Sentral

Foreign currency-denominated loans lent by banks grew at a double-digit pace in the first six months of the year as the country experiences better economic conditions, according to the central bank. “With the higher growth in FCDU loans vis-à-vis rate of increase in deposits, the overall loans-to-deposits ratio improved to 20.7 percent as of end-June this year from 21 percent in the same period last year," the Bangko Sentral ng Pilipinas said Thursday. Loans from foreign currency deposit units (FCDUs) — the section of banks in charge of taking deposits and extending loans in foreign currencies — totaled $5.12 billion from January to June 2010, up 11 percent from $4.627 billion a year earlier. Resident borrowers have consistently dominated borrowings from FCDUs, accounting for about $3.5 billion or 68.1 percent of the total portfolio, the central bank said. Non-resident borrowers accounted for $1.635 billion or 31.9 percent, the central bank added. About $1.7 billion or 60 percent of new loan releases were disbursed to resident borrowers, while $1.1 billion or 40 percent went to non-resident borrowers, the BSP said. Deposits placed with FCDUs amounted to $24.5 billion as of end-June, a record high, compared with $24.1 billion a year earlier, the central bank said. Residents held bulk or 98 percent of these deposits while non-residents held 2 percent, the BSP said. About 62 percent or $3.047 billion of the total FCDU loans had medium- to long-term maturities, while 38 percent or $1.905 billion had short-term tenors payable within one year, it said. —JE/VS, GMANews.TV