FCDU lending increase in the third quarter
Outstanding loans granted by Foreign Currency Deposit Units (FCDU) of banks stood at $15.5 billion as of end-September , an increase of $109 million or by 0.7 percent from the end-June level of b$15.4 billion as disbursements exceeded principal repayments.
Year-on-year, outstanding FCDU loans decreased by about $164 million or by one percent from the end-September 2022 level of $15.7 billion.
As of end-September, the maturity profile of the FCDU loan portfolio remained predominantly medium- to long-term [or those payable over a term of more than one year], which comprised 77.6 percent of total, slightly lower than 78.3 percent from the previous quarter.
FCDU loans granted to residents stood at $9.4 billion or 60.6 percent of total outstanding FCDU loans, of which majority went to the following sector/industries: power generation companies ($2.4 billion or 25.3 percent); merchandise and service exporters ($2.3 billion or 24.5 percent); and towing, tanker, trucking, forwarding, personal and other industries ($1.3 billion or 13.5 percent).
Gross disbursements in the third quarter of 2023 reached $17.1 billion higher by 18.8 percent than the previous quarter’s $14.4 billion mainly due to the increase in funding requirements of a foreign bank branch affiliate.
Similarly, loan repayments in the reference quarter of $17.0 billion were 17.4 percent higher than previous quarter’s $14.4 billion. These resulted in overall net disbursement.
FCDU deposit liabilities reached an all-time high of $51.8 billion as of end-September, higher by about $2.8 billion (or by 5.7 percent) from the end-June level of $49 billion.
The bulk of these deposits ($50.4 billion or 97.3 percent) continued to be owned by residents, essentially constituting an additional buffer to the country’s gross international reserves.
Year-on-year, FCDU deposit liabilities increased by $6.0 billion (or by 13.2 percent) from the end-September 2022 level of $45.8 billion. BSP
