Outstanding loans granted by the foreign currency deposit units (FCDUs) of Philippine banks reached USD15.75 billion, marking a 0.7 percent rise from the previous quarter and a 1.6 percent year-on-year increase. The growth, driven by robust disbursements exceeding principal repayments, highlights the role of FCDUs as a secondary source of foreign currency reserves.
According to the Bangko Sentral ng Pilipinas (BSP), the FCDU loan portfolio remained predominantly medium- to long-term, with loans payable over one year or more accounting for 77.3 percent of the total. This shift reflects a stable, long-term funding outlook, contributing to the country’s financial resilience.
Notably, loans to residents amounted to USD9.68 billion, or 61.5 percent of the total outstanding FCDU loans. Key sectors benefiting from these loans include merchandise and service exporters, logistics industries, and power generation companies. These sectors received a significant share of the funding, underscoring their role in helping drive the country’s economic growth.
In terms of disbursements, the third quarter of 2024 saw a notable increase of 9.4 percent, reaching USD21.77 billion, driven by higher funding needs from foreign bank affiliates. Despite a 6.6 percent rise in loan repayments to USD21.68 billion, net disbursements for the quarter remained positive.
FCDU deposit liabilities also saw a healthy increase, reaching USD57.46 billion by the end of September, up 4.2 percent from June. The majority of these deposits (97.7 percent) were held by residents, further strengthening the country’s gross international reserves.
The BSP views FCDUs as a critical secondary reserve for the Philippines, enhancing the country’s capacity to meet external obligations while bolstering the overall financial system.
