FCDU loans barely down in Q3 2022

OUTSTANDING loans granted by banks’ Overseas Foreign money Deposit Items (FCDU) totaled $15.67 billion on the finish of September 2022.

“The decline in FCDU lending will be attributed to the gradual easing of credit score parameters and internet tightening in general lending requirements by lending banks, leading to unchanged or intentional lending and lending exercise amid uncertainty concerning the financial outlook and lowered borrower demand for FCDU Lending within the face of trade fee volatility and rising borrowing prices,” the central financial institution stated.

12 months over 12 months, excellent FCDU loans declined $164 million, or 1.0 p.c, from $15.8 billion on the finish of September final 12 months.

On the finish of September 2022, the maturity profile of the FCDU mortgage portfolio consisted principally of medium to long-term debt or debt with a maturity of multiple 12 months, accounting for 78.5 p.c of the whole.

The BSP stated FCDU loans granted to residents accounted for 63.7 p.c of whole excellent FCDU loans.

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“Of the $10.0 billion in excellent loans to residents, the bulk went to the next industries: energy technology firms ($2.7 billion, or 27.4 p.c); exporters of products and providers ($2.4 billion or 24.4 p.c); and administration/holding and fairness brokerage ($1.2 billion, or 12.3 p.c),” she added.

In the meantime, gross disbursements for the third quarter of 2022 reached $14.6 billion, down 6.6 p.c sequentially, “primarily on account of a lower within the funding wants of a subsidiary of a overseas financial institution,” the BSP stated.

Mortgage repayments additionally fell 8.0 p.c to $14.6 billion, leading to a complete internet payout, in keeping with the central financial institution.

Within the third quarter, FCDU deposit liabilities had been $45.8 billion, a lower of $838 million, or 1.8 p.c, from the end-June 2022 stage of $46.6 billion.

“The majority of those deposits (97.3 p.c) stay within the possession of residents, basically offering a further buffer to the nation’s gross worldwide reserves,” BSP stated.

The central financial institution stated FCDU deposit liabilities decreased by $102 million (or 0.2 p.c) year-on-year from $45.9 billion on the finish of September 2021.