FCDU deposits hit record $58.9 billion in Q1

MANILA, Philippines — The foreign currency-denominated deposits of banks in the Philippines rose to an all-time high of $58.92 billion as of end-March, data from the Bangko Sentral ng Pilipinas (BSP) showed.

The amount was 0.5 percent higher than the $58.61 billion recorded in end-March last year.

Meanwhile, the outstanding loans granted by foreign currency deposit units (FCDUs) of local banks and foreign bank branches slipped by 0.2 percent to $15.78 billion as of end-March. On a year-on-year basis, FCDU loans were down by 1.8 percent.

FCDUs are authorized by the BSP to engage in foreign currency-denominated transactions and typically provide financing for foreign trade and investment activities.

The increase in foreign currency deposits brought the overall FCDU loans-to-deposits ratio to 26.8 percent during the period.

FCDU loans cater to borrowers with foreign exchange requirements, including importers, businesses, and individuals with foreign currency obligations.

Of the total loans, 77.2 percent had medium- to long-term maturities, or those payable beyond one year. This is slightly higher than the 77.1 percent share recorded in the previous quarter.

The BSP said Philippine residents accounted for the bulk of the borrowings at $9.91 billion, or 62.8 percent of the total. The top domestic borrowers included merchandise and service exporters ($2.44 billion or 24.6 percent), towing and logistics services ($2.11 billion or 21.3 percent) and power generation companies ($1.9 billion or 19.1 percent).

During the quarter, banks extended $7.66 billion in new loans, while payments received amounted to $7.72 billion.