MANILA, Philippines — Bank lending contracted for the second consecutive month in January 2021 as both financial institutions and borrowers remained risk averse due to uncertainties caused by the ongoing COVID-19 pandemic, according to the central bank.
In a statement, the Bangko Sentral ng Pilipinas (BSP) said outstanding loans of universal and commercial banks, excluding short term deposits with the regulator, decreased by 2.4 percent during the first month of 2021.
This followed a 0.7-percent decline in December 2020, which marked the first time the amount of loans underwritten by banks contracted since September 2006. Before this, bank loan growth was already on the decline f…
Keep on reading: Bank lending down for second month as lenders, borrowers still averse to risks