ASEAN KEY DESTINATIONS
Philippines access to credit improving
According to the Bangko Sentral ng Pilipinas (BSP), more firms reported an improvement in their access to credit in the third quarter compared with the previous quarter and the same three-month period last year.
In its latest Business Expectation Survey released last week, the BSP said the credit access index for the July to September period improved to 10.1 percent from 9.2 percent in the second quarter. This is the highest level recorded since the fourth quarter of 2007.
Banks had been increasing their lending activities the past few months as demand for credit improved and money supply remained steady,
as shown by the latest data from BSP. In June, bank loans—net of bank’s repurchase placements with the central bank—grew by 9.6 percent from 8.1 percent in May.
The growth of loans for production—which comprise around four-fifths of commercial banks’ total loan portfolio—accelerated to 9.3 percent in June from 7.9
percent in May. Similarly, loans for household consumption expanded by 13 percent from 10.3 percent in May.
The numbers are consistent with companies’ survey response that they are confident that their business operations would improve in the third quarter based
on the volume of total orders and business activity across all sectors in the current quarter.
The average capacity utilization of companies in the same period rose to 74.7 percent from the previous quarter’s 74.1 percent, indicating more favorable business.
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