BSP rediscounting loans down 12% to P16.6B in Jan-May

 Economy
Jun 122013
 
BSP rediscounting loans down 12% to P16.6B in Jan-May

MANILA, Philippines – Banks borrowed fewer funds from the Bangko Sentral ng Pilipinas (BSP) in the first five months, highlighting the healthy state of the local banking industry. Peso loans granted to banks under the central bank’s rediscount facility totaled P16.605 billion from January to May, 11.9 percent lower from the same period last year, data showed. Dollar credit, granted under the exporters dollar and yen rediscount facility, likewise dipped 6.8 percent to $61.5 million from $66 million a year ago. A total of 26 exporters benefited from the credit. No yen credit was extended during the period. The central bank’s rediscount window allows banks to borrow extra funds from the BSP charged with interest pegged against the BSP’s overnight borrowing rate. The current rate is at a record-low of 3.5 percent. The BSP has long highlighted the strength and health of the local banking industry, with sufficient capital and liquidity as well as enough provisioning against potential losses, to lend more. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 According to latest BSP data, bank resources hit P8.229 trillion as of February, an increase of 9.09 percent from the previous year’s P7.544 trillion. The latest figure was also up from end-January’s P8.225 trillion. The rediscount facility, it has said, was meant to provide additional funding for banks to lend out to specific industries such as the export and agriculture sectors. Of the total peso credit lent until May, 86.6 percent went to commercial activities, while 2.1 percent went Read More …

Phl safe from asset bubbles – BSP

 Economy
May 052013
 
Phl safe from asset bubbles – BSP

MANILA, Philippines – Property loans granted for residential purposes rose the fastest among other household credit last year, but remained of the best quality, boosting the Bangko Sentral ng Pilipinas’ (BSP) belief that the country is still safe from asset bubbles. In its Status of Philippine Financial System Report released last Friday, the central bank said residential real estate loans increased 19.77 percent to P264.2 billion from P220.836 billion a year ago. This accounted for the biggest share in consumer loans, at 42 percent of the total P629.3 billion granted during the same period. Aggregate consumer loans went up 15.28 percent year-on-year. Other consumer loans were auto loans, credit card receivables and those used for other purposes such as purchase of appliances. All recorded gains from their 2011 levels. Despite the marked increase, residential property loans enjoyed the lowest bad loan ratio or the proportion of unpaid loans over the loan portfolio. Bad loans are those that remained unpaid 30 days after the due date. Unpaid credit accounted for 4.1 percent of total residential real estate loans, down from 4.3 percent in 2011. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Last week, BSP Governor Amando Tetangco Jr. said there are “no emerging signs” of asset bubble formation in the Philippines despite the affordability of bank credit and surge of inflows from abroad. Asset bubbles are characterized by an upshot in asset prices, such as those in the real estate sector, that they no longer reflect real market rates Read More …

Remittances grew by 7% in Feb. – Bangko Sentral

 Entertainment
Apr 172013
 

MANILA, Apr 15 (Mabuhay) – Filipinos working and living abroad sent home $1.9 billion in personal remittances in February, up by 6.9 percent from $1.7 billion a year earlier, the Bangko Sentral ng Pilipinas reported Monday. “The steady deployment of overseas Filipino workers remained a primary contributory factor to the growth in remittance flows,” the […]

Monetary board cuts SDA rate in bid to spur economy

 Economy
Mar 142013
 
Monetary board cuts SDA rate in bid to spur economy

MANILA, Philippines – Monetary officials slashed on Thursday the special deposit account (SDA) rate to 2.5 percent in a bid to push out idle funds to help fund economic activity and boost growth amid a low inflation environment. Policy rates were also kept steady at record-lows of 3.5 percent for overnight borrowing and 5.5 percent for overnight lending, the Bangko Sentral ng Pilipinas (BSP) said. The rate of the SDA— deposits of banks and trust departments with the BSP— was cut by 50 basis points from three percent. This was the second cut made for the year, following a similar reduction in January. “The Monetary Board’s decision to maintain the policy interest rates at their current levels is based on its assessment that the inflation environment over the policy horizon is likely to remain manageable,” BSP Governor Amando Tetangco, Jr. told reporters. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Inflation is seen to average 3.3 percent for 2013 and 2014, slightly faster than the January forecasts of three percent and 3.2 percent, respectively. Both are still within the low-end of the official 3-5 percent target range. “The revisions (to forecasts) were because of the higher actual outturn for the January inflation,” BSP Assistant Governor Ma. Cyd Tuaño-Amador said in a briefing. Inflation accelerated to 3.4 percent in February from 3 percent in January. This put the average so far to 3.2 percent. Amador said with prices under control, BSP could allow more liquidity to flow out of the Read More …

Inflation seen at 2.8-3.7%

 Economy
Feb 262013
 
Inflation seen at 2.8-3.7%

MANILA, Philippines – Inflation could settle between 2.8 percent and 3.7 percent this month as lower food and electricity prices offset oil price hikes, the Bangko Sentral ng Pilipinas (BSP) said yesterday. The forecast falls at the lower end of this year’s official three to five-percent target. Inflation picked up to three percent in January after settling at 2.9 percent in  December 2012. On average, however, consumer prices rose 3.2 percent last year. “Results of the BSP’s latest forecasting exercises suggest that average inflation for 2013 and 2014 could still settle at the lower half of the government-set target range,” BSP Governor Amando Tetangco Jr. said in a text message to reporters.  “(This reflects) continued manageable inflation pressures and well-anchored inflation expectations,” he added. For February, Tetangco said upside pressures coming from a spate of oil price adjustments – and their possible impact to other commodity prices – could nudge consumer prices higher. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Local oil firms have hiked prices five times this year compared with only three rollbacks, according to monitoring by the Department of Energy. Diesel and gasoline prices have risen by P2.05 and P3.05 per liter from their levels end of last year. As of Monday, diesel now has a price range of P41.25-44.30, while gasoline price range was pegged at P51-P57.39. Price pressures from oil prices could be tamed by lower electricity rates this month, Tetangco said.

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