Banks sustain lending amid pandemic

Sumary of Banks sustain lending amid pandemic:

  • “Due in part to the BSP’s existing Covid-19 regulatory toolkit and policy reforms, banks continued to actively lend and restructure loans of borrowers during the pandemic,” BSP Governor Benjamin Diokno pointed out in a briefing on Thursday.
  • In the meantime, Diokno stressed, the amount of new loans given by universal and commercial banks (UKBs) on a monthly basis has remained reasonably consistent, ranging between 6 percent and 8 percent of outstanding loans as of the reference month.
  • “Banks also continue to lend or restructure loans to micro-, small- and medium enterprises or MSMEs (micro, small, and medium enterprises),” Diokno added.
  • This is a substantial increase from the P8.7 billion in MSME loans reported in April 2020.Diokno also said that the central bank is working to increase incentives for banks to provide financial relief and fresh loans to borrowers.
  • In support of the country’s steady path toward balanced growth, Diokno underscored that the Bangko Sentral recently approved two relief measures.
  • Amid the pandemic, he highlighted, the BSP provided extra relief measures on restructured loans and the impact of loan provisioning on bank capital to encourage its supervised financial institutions to award new loans and provide financial relief to borrowers.

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