MANILA, Philippines — Bank lending would likely return to growth mode in the third quarter, with hopes pinned on further easing of pandemic restrictions and mass vaccinations to ease lingering risk aversion among lenders and borrowers. “The key to economic recovery is the success in the vaccination program. “Just like everything in 2020, base effects will feature prominently after bank lending saw a steady deceleration in 2020 owing to the pandemic. June was the first month of single digit growth before overall lending crashed into negative territory by year end,” Mapa said in an e-mail. “We could see bank lending improve by end-third quarter with the timing of the recovery largely tied to how quickly the economy can start to resemble its past 6% growth self,” he added.
Source: Philippine Star June 14, 2021 09:45 UTC