Banks’ outstanding foreign currency deposit unit (FCDU) loans rose by 0.7 percent as of end-September, an increase of $114 million from the second-quarter level of $15.63 billion as disbursements exceeded principal repayments, the central bank said.
According to the Bangko Sentral ng Pilipinas (BSP), outstanding FCDU loans increased annually by $246.04 million (1.6 percent) from the end-September 2023 level of $15.50 billion.
As of end-September 2024, medium- to long-term loans—those payable over more than one year—accounted for the majority (77.3 percent) of the total FCDU loan portfolio. This saw a slight increase from 76.7 percent in the previous quarter.
Gross disbursements in the third quarter increased by 9.4 percent, reaching $21.77 billion, up from $19.90 billion in the previous quarter. This rise, according to the BSP, was primarily driven by the increased funding requirements of a foreign bank branch affiliate.
Likewise, loan repayments in the third quarter totaled $21.68 billion, a 6.6 percent increase from the previous quarter’s $20.33 billion, leading to a net disbursement overall.
Loans granted to residents by FCDUs reached $9.68 billion, accounting for 61.5 percent of the total outstanding loans.
Of these resident loans, the largest shares went to merchandise and service exporters (25.7 percent), transportation industries (21.5 percent), and power generation (19.9 percent).
FCDU deposit liabilities grew to $57.46 billion as of end-September 2024, marking a 4.2 percent increase from $55.16 billion in June 2024.
About 97.7 percent of these deposits ($56.12 billion) are owned by residents, “essentially constituting an additional buffer to the country’s gross international reserves.” These deposits grew by 10.9 percent annually.