Foreign Currency

Banks’ FCDU lending slightly down in January to September 2023

Loans facilitated by banks’ foreign currency deposit units (FCDUs) in the Philippines reached $15.501 billion during the first nine months of 2023, reflecting a one percent decline compared to the same period the previous year.

FCDUs, recognized as units of local banks or branches of foreign banks authorized by the Bangko Sentral ng Pilipinas (BSP), engage in transactions involving foreign-currency denominated deposits, as well as investments and foreign exchange transactions.

BSP data showed a modest 0.7 percent quarter-on-quarter rise in FCDU loans, reaching $15.392 billion at the end of June 2023, driven by increased disbursements outpacing principal repayments.

In the third quarter of last year, gross disbursements surged 18.8 percent to $17.1 billion.

FCDU loans extended to residents amounted to $9.396 billion, 5.8 percent lower than last year.

As of end-September, FCDU deposit liabilities reached a record $51.799 billion, up $2.8 billion or 5.7 percent from the end of June ($48.987 billion).

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