Banks' outstanding foreign currency deposit unit (FCDU) loans fell by 0.3 percent or by $44 million to $15.67 billion in September 2022 against $15.71 billion in June 2022.
In a statement, the Bangko Sentral ng Pilipinas (BSP) said, on a year-on-year (YoY) basis, outstanding FCDU loans decreased by $164 million (or by 1.0 percent) from the end-September 2021 level of $15.8 billion.
"As of end-September 2022, the maturity profile of the FCDU loan portfolio remained predominantly medium- to long-term debt [or those payable over a term of more than one year], which comprised 78.5 percent of total," the Bangko Sentral ng Pilipinas (BSP) said in a statement.
FCDU loans granted to residents comprised 63.7 percent of total outstanding FCDU loans.
The BSP also said that the decrease in FCDU loans may be attributed to: (a) gradual move in easing credit parameters and net tightening of overall credit standards of lender banks resulting in an unchanged or deliberate lending operations and credit activity amid uncertainty in the economic outlook; and (b) borrowers' reduced demand for FCDU loans in light of foreign exchange volatility and rising borrowing costs.
Furthermore, of the $10.0 billion outstanding loans to residents, majority went to the following sector/industries: power generation companies ($2.7 billion or 27.4 percent); merchandise and service exporters ($2.4 billion or 24.4 percent); and management/ holding and stock brokerage ($1.2 billion or 12.3 percent), the central bank added.
Also, the bank said the gross disbursements in the third quarter of 2022 has reached $14.6 billion and were 6.6 percent lower than the previous quarter's figure mainly because of decrease in funding requirements of a foreign bank branch affiliate.
"Similarly, loan repayments in the same quarter totaled $14.6 billion, an 8.0-percent decrease from the previous quarter's figure. These resulted in overall net disbursement," the BSP said.
Meanwhile, FCDU deposit liabilities stood at $45.8 billion as of end-September 2022, lower by $838 million (or by 1.8 percent) from the end-June 2022 level of $46.6 billion.
The bulk of these deposits (97.3 percent) continue to be owned by residents, essentially constituting an additional buffer to the country's gross international reserves.