FCDU Loans Of Banks Hit $16.1 Billion

Outstanding loans granted by Foreign Currency Deposit Units (FCDU) of banks stood at US$16.1 billion as of the end of March 2024, an increase of US$911 million or 6.0 percent from the end-December 2023 level of US$15.2 billion as disbursements exceeded principal repayments.

The bulk of these deposits (US$57.4 billion or 97.9 percent) continued to be owned by residents.

Year-on-year, outstanding FCDU loans increased by US$614 million or 4.0 percent from the end-March 2023 level of US$15.5 billion.

For the reference quarter, 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), comprising 79.1 percent of the total, slightly higher than 78.6 percent from the previous quarter.

FCDU loans granted to residents stood at US$9.7 billion or 60.6 percent of total outstanding, with the majority going to the following sectors/industries: merchandise and service exporters (US$2.4 billion or 24.4 percent); power generation companies (US$2.2 billion or 22.4 percent); and towing, tanker, trucking, forwarding, personal, and other industries (US$1.7 billion or 17.8 percent).

Gross disbursements in the first quarter of 2024 reached US$19.2 billion, higher by 6.4 percent than the previous quarter’s US$18.0 billion, mainly due to the increase in funding requirements of a foreign bank branch affiliate.

On the other hand, loan repayments in the reference quarter of US$18.2 billion were 0.8 percent lower than the previous quarter’s US$18.4 billion. These resulted in overall net disbursement.

FCDU deposit liabilities reached an all-time high of US$58.6 billion as of the end of March 2024, higher by about US$4.2 billion (or 7.7 percent) from the end-December 2023 level of US$54.4 billion.

This is mainly due to the hike in FCDU time certificates of deposits owned by private corporations and resident individuals, aligning with the uptick in remittances from overseas Filipinos.

The bulk of these deposits (US$57.4 billion or 97.9 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 US$9.9 billion (or 20.3 percent) from the end-March 2023 level of US$48.7 billion.