{"id":174160,"date":"2018-07-31T01:30:34","date_gmt":"2018-07-31T05:30:34","guid":{"rendered":"https:\/\/canadianinquirer.net\/v1\/?p=174160"},"modified":"2018-07-31T01:30:34","modified_gmt":"2018-07-31T05:30:34","slug":"espenilla-economic-expansion-benefits-banking-system","status":"publish","type":"post","link":"https:\/\/canadianinquirer.net\/v1\/2018\/07\/31\/espenilla-economic-expansion-benefits-banking-system\/","title":{"rendered":"Espenilla: Economic expansion benefits banking system"},"content":{"rendered":"
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\u201cThe banking system is healthy and profitable. Over-all profitability is buoyed by the increase in core income from lending activities,\u201d Espenilla said. (Photo: ECCP – European Chamber of Commerce of the Philippines\/Facebook<\/a>)<\/figcaption><\/figure>\n

MANILA<\/strong>\u00a0— Banks continue to reap the benefits from the Philippine economy’s sustained expansion as shown by the robust growth of deposits and lending activities, which in turn helps ensure the industry\u2019s health.<\/p>\n

Bangko Sentral ng Pilipinas (BSP) Governor Nestor A. Espenilla Jr. said banks continue to attract deposits, which as of end-May 2018 has risen by 12.5 percent.<\/p>\n

Most of these funds are extended to borrowers and the loans \u201cwere broad-based across various borrower and industry types.\u201d<\/p>\n

\u201cThe banking system is healthy and profitable. Over-all profitability is buoyed by the increase in core income from lending activities,\u201d Espenilla said.<\/p>\n

As of end-May this year, outstanding loans of commercial banks, excluding placements in the BSP\u2019s reverse repurchase (RRP) facility, rose by 19.4 percent.<\/p>\n

On the other hand, bank lending, including RRP placements, in the first five months this year went up by 17.7 percent.<\/p>\n

The central bank chief said banks continue to heed reform measures that the BSP has been introducing.<\/p>\n

Among others, this has resulted in improvement of the industry\u2019s capitalization to above regulatory thresholds, he said.<\/p>\n

\u201cBanks continue to adhere to sound credit underwriting standards as shown by the very satisfactory quality of the banking system\u2019s loan portfolio. Moreover, banks are well prepared to bear credit losses as they have set up adequate provisions for possible defaults,\u201d he said.<\/p>\n

Espenilla said monetary officials \u201cexpect further expansion of the banking system, sound asset quality, adequate liquidity and rising capital buffers.\u201d<\/p>\n

\u201cThe trajectory for profit growth will continue, driven mainly by strong growth outlook, upbeat lending activities, product innovations, and more cost-efficient and technology-enabled operations,\u201d he said<\/p>\n

\u201cAs the main provider of credit to key production sectors, the banking system is key to the Philippine growth story,\u201d he added.<\/p>\n","protected":false},"excerpt":{"rendered":"

MANILA\u00a0— Banks continue to reap the benefits from the Philippine economy’s sustained expansion as shown by the robust growth of …<\/p>\n","protected":false},"author":33,"featured_media":174161,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[],"class_list":["post-174160","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","mauthors-joann-villanueva","mauthors-philippine-news-agency"],"_links":{"self":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/174160","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/comments?post=174160"}],"version-history":[{"count":0,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/174160\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media\/174161"}],"wp:attachment":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media?parent=174160"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/categories?post=174160"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/tags?post=174160"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}