The Bangko Sentral ng Pilipinas (BSP) lauded the Philippines’ thrift banking industry for its continued resilience from the pandemic.
The thrift banking industry doubled its resources as of end-June this year to PHP1.1 trillion from around P566.4 billion last year, BSP Governor Benjamin Diokno said.
“Deposit liabilities and owners’ funds continue to finance asset growth, highly indicative of the public’s continued trust and confidence in the thrift banking industry,” Diokno said.
Diokno said the sector remains a strong ally of the government in boosting the welfare of the micro, small and medium enterprises (MSMEs) even during the pandemic.
As of end-June this year, thrift banks extended about P72.3 billion worth of loans to MSMEs and this rose to P80 billion as of end-July, he said.
This is on top of the P251.2 billion that the industry lent for real estate activities and the PHP302.2 billion extended for consumer finance.
While concerns on the rise of non-performing loans (NPLs) increased during the pandemic, the sector posted an improvement on this area with the figure going down to 5.7 percent as of last June from 5.9 percent in the same period in 2019.
NPL coverage also got better after it rose to 60.4 percent from 46.8 percent in June last year.