Game-changing vaccine will bring positive credit growth in Q3: BSP chief

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Customers line up at a bank ATM in Manila on March 30, 2021 amid the resumption of heightened public quarantine in the Greater Manila area. Mark DeMayo, News / ABS-CBN File

MANILA – Loans that have been delayed over the past few months may start to pick up positively again by the third quarter as the government’s vaccination campaign gains momentum, Bangko Sentral ng Pilipinas Governor Benjamin Diokno said Monday.

The COVID-19 pandemic has forced unsafe banks to tighten credit requirements while demand from cash-strapped Filipinos has eased due to uncertainty, Diokno told ANC.

“As we open up the economy, I think confidence is growing. Consumer and business confidence points to a more optimistic outlook for the next few quarters, ”Diokno said.

“There is a lot of liquidity in the market. Banks are avoiding risk, but I think confidence is returning, mainly because of the game-changing vaccine, vaccination program, ”he added.

The Philippines launched a vaccination campaign last March.

Due to the pandemic, many companies have postponed expansion plans that usually boost lending. Consumers who lost their jobs or lost income also refrained from borrowing.

In the meantime, usually conservative local governments take out more loans totaling 60 billion pesos in 2020. There may be more borrowing this year or the year before the election, Diokno said.

ANC, ANC Top, BSP, Bangko Sentral ng Pilipinas, credit, credit growth, banks, consumer loans

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