Phl banking growth remains upbeat

CEBU, Philippines - The continuing growth of the banking sector in terms of market liquidity and credit demand is a major factor for banks to favorably prepare for the economic integration next year, a bank official said.

Natividad N. Alejo of Bank of the Philippine Islands said the growth of the industry’s core business has always been healthy and robust. Alejo is the company’s executive vice president and group head.

“The loan numbers are up and the deposit numbers are also significantly up,” Alejo said in an interview on the sidelines of BPI’s auto, housing & lifestyle madness event yesterday in Ayala Center Cebu.

“I think, we are ahead of the growth of the market and that’s really mirroring in what is in the Philippine market,” the bank executive added. 

Significant growth

Despite the current increase in interest rates, Alejo noted the business has been able to deliver a significant growth which has benefited the industry in general.

The BSP’s Monetary Board recently raised its policy rate and the rate on its special deposit accounts, in an attempt to curb inflation.

The overnight borrowing rate was hiked by 25 basis points to 4 percent and the SDA rate by the same amount to 2.5 percent.

She also noted, “a lot of revenues right now in many financial institutions have gone back to the core business. That, by itself, should be a major way for banks locally to prepare for Asean 2015.”

The integration will allow accredited foreign banks to set up banking institutions in the Philippines, an event which, Alejo emphasized, would strengthen the local banking sector and its market. The Bangko Sentral ng Pilipinas said the integration of Asean banks will be fully materialized between 2015 and 2020.

Financial needs

Meanwhile, Maricris San Diego, vice president of BPI’s personal banking head, explained the madness event would help the bank clients attain their financial and lifestyle needs such as a car, house, personal loan, financial health check, etc.

Jose Raul Jereza IV, the firm’s vice president, said the public should be educated and be aware of the existing bank products and how they can benefit from these.

Jereza said a madness event does not necessarily generate a surge in credit card application from prospective users.

However, he said, “We’ll make the customers realize what those products can do for them. We should give the customers a chance of informed choice.”

The Ayala-led BPI has partnered with real estate firms, car brands and gadget companies for the event which will run until Sunday. (FREEMAN)