Bangko Sentral urges banks to keep real estate lending 'a priority'

ABS-CBN News

Posted at Dec 02 2021 01:07 PM

MANILA -- The Bangko Sentral ng Pilipinas (BSP) said Thursday real estate lending should remain a priority for banks.

Real estate loans grew 6.1 percent year-on-year to P2.3 trillion in June 2021, while the non-performing loan ratio was "steady" as lending activities increased for the sector, the BSP said in a statement.

"Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno expects real estate lending will remain a priority area for banks," the BSP said.

Meanwhile, the central bank said outstanding loans of universal and commercial banks rose faster at 3.5 percent in October, compared to September's 2.7 percent. 

Lending has been recovering gradually as the economy reopens further from the impact of the COVID-19 pandemic.

The BSP has kept the benchmark interest rate, used by banks to price loans, at its record low of 2 percent for almost a year to support recovery.

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