During the first half of 2021, 41.9 percent of respondents expect GDP growth to range between 5.0 percent and 6.0 percent within the two-year timeframe. The central bank said 18.3 percent of respondents, mostly rural and cooperative banks, expect a weaker banking sector in 2022 to 2023. Credit expansion is likely to drive asset growth, the BSP added, as more respondent banks (72.7 percent) projected double-digit growth in their loan portfolio in the next two years. The slowdown in economic activity has also put strain on the quality of bank loan portfolios, according to the central bank. With a non-performing loan to total loan ratio of more than 5 percent, all banks expect their loan quality to deteriorate.

Source: Manila Times July 21, 2021 17:15 UTC