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MANILA, Philippines - Loans issued by foreign exchange units of banks in the fourth quarter of 2011 rose from the previous year amid a drop in the amount of deposits entrusted to them, according to the Bangko Sentral ng Pilipinas (BSP).
In a statement, the BSP said the loans-to-deposit ratio of foreign currency deposit units (FCDUs) of banks rose to 29.2 percent in the October to December period last year from 23.3 percent in the same three-month period of 2010.
This as the outstanding loans of FCDUs climbed 20 percent to $7.066 billion in the fourth quarter of 2011 from $5.846 billion the year before, while their deposit liabilities fell nearly three percent to $24.201 billion from $24.947 billion over the same period.
Quarter-on-quarter, the October to December loans-to-deposits ratio likewise was higher than the 26.7 percent in the July to September period.
BSP Gov. Amando M. Tetangco Jr. said loan transactions resulted in net loan disbursements of $535 million because of the favorable interest rate environment as well as positive business sentiment.
The private sector accounted for the bulk of resident borrowings from FCDUs at $5.816 billion or 82.3 percent of the total in the fourth quarter of 2011, a 32 percent increase from the year before.
Short-term loans accounted for 40.5 percent of total FCDU loans, with the balance of 59.5 percent involving medium- to long-term obligations.
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