Banks relaxed lending to companies and households in the fourth quarter of 2017, the Bangko Sentral ng Pilipinas (BSP) reported on Friday. A negative DI —-3.7 percent in the quarter—showed that more banks relaxed their lending rules, compared to those that did otherwise. In terms of specific credit standards, the net easing was reflected in the banks’ increased credit line size, less strict collateral requirements, and longer loan maturities. More banks expect overall credit standards for business loans to tighten over the next quarter, largely on account of their perception of stricter financial system regulations. The SLOS helps the BSP enhance its understanding of banks’ lending behavior, an important indicator of the strength of credit activity in the country.
Source: Manila Times January 19, 2018 18:45 UTC