Banks in the Philippines have become more strict when it comes to lending to consumers. It has been reported that the country’s banks are becoming less liberal, despite the sustained demand for cash in order to pay for homes and cars in the first quarter of 2014 as monetary conditions in the country have began to tighten.


The Philippine central bank stated that big corporations in the country had an easier time getting money from banks, which happened because lenders were opting to deal more with companies, rather than with households. The BSP’s Senior Loan Officers Survey which was conducted in the first quarter of 2014 showcased that banks in the Philippines had more discipline when it comes to their lending to particular sectors of the economy.

It has been reported that banks are becoming more rational with their lending and this helps in ensuring that the banking industry in the Philippines avoids a massive build-up of risky consumer loans, which could lead to economic instability in the country.

The survey by BSP displayed a net easing of lending standards for enterprises, but there was an exception of small-to-medium enterprises. Moreover, 7.3 percent of the banks surveyed said that they eased lending standards and just 3.7 said that their standards were tightened.

Photo Credits: Techniasia


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