Commercial Banks' Exposures in Real Estate Loans Decline in Q2.(Business)
Byline: FIL C. SIONIL
The Bangko Sentral ng Pilipinas (BSP) yesterday reported a 1.8 percent decline in commercial banks credits to real estate sector, sliding to P192.3 billion in the second quarter ending June of this year from P195.7 billion in March, an indication of the prevailing risk-averse attitude of lenders due to uncertainty.
The P192.3 billion commercial banks' exposure to real estate industry, includes its equity stake in real estate firms.
The stoic behavior of the bigger financial institutions to lend cascaded to smaller banks with thrift banking industry exposure likewise remaining relatively static at P41.74 billion end June from P41.71 billion in March of this year.
As a consequence, BSP Governor Rafael Carlos B. Buenaventura said the commercial bank's past due on real estate loans (REL) barely improved from P51.4 billion to P50.50 billion in June.
The slight drop in past due levels, however, hardly affected the ratio of overdue accounts to REL as it continued to climb to 27.5 percent from 27.3 percent.
Despite the increase, past due REL represented only 3.0 percent of the total outstanding loans of commercial banks. …