MANILA, Philippines—The steady growth in liquidity in the Philippine financial system has once more failed to translate into new loans necessary to boost economic growth, meaning both lenders and borrowers remain risk-averse due to the lingering effects of the COVID-19 pandemic.
In a statement, the Bangko Sentral ng Pilipinas (BSP) cited preliminary data showing that outstanding loans of universal and commercial banks—excluding their short term deposits with the regulator—declined by 5 percent year-on-year in April.
This followed a 4.5-percent contraction in March, and marks the fifth consecutive month of contraction for bank lending which is a key indicator of the econom…
Keep on reading: PH economy swimming in cash but bank loans dry for fifth month in April