Bad loans declining even as credit card use rises says Bangko Sentral
ADVERTISEMENT
Welcome, Kapamilya! We use cookies to improve your browsing experience. Continuing to use this site means you agree to our use of cookies. Tell me more!
Bad loans declining even as credit card use rises says Bangko Sentral
Warren de Guzman,
ABS-CBN News
Published Oct 17, 2022 02:05 PM PHT
|
Updated Oct 17, 2022 02:43 PM PHT
MANILA - Philippine banks have reported fewer bad loans in spite of the increase in credit card use in the past year, the Bangko Sentral ng Pilipinas said on Monday.
MANILA - Philippine banks have reported fewer bad loans in spite of the increase in credit card use in the past year, the Bangko Sentral ng Pilipinas said on Monday.
BSP Governor Felipe Medalla noted that “from a peak of 10 percent non-performing loans (NPLs) in November 2020, the last data showed the banks’ NPL has eased to 5.7 percent as of the end of July.”
BSP Governor Felipe Medalla noted that “from a peak of 10 percent non-performing loans (NPLs) in November 2020, the last data showed the banks’ NPL has eased to 5.7 percent as of the end of July.”
Medalla said this was a rate close to pre-pandemic levels.
Medalla said this was a rate close to pre-pandemic levels.
BSP Deputy Governor Chuchi Fonacier noted NPLs or bad debts have gone down in spite of an increase in credit card use.
BSP Deputy Governor Chuchi Fonacier noted NPLs or bad debts have gone down in spite of an increase in credit card use.
ADVERTISEMENT
"Credit card billings grew 41.4 percent year-on-year in June 2022 compared to 29.5 percent growth in the same period last year,” Fonacier said.
"Credit card billings grew 41.4 percent year-on-year in June 2022 compared to 29.5 percent growth in the same period last year,” Fonacier said.
Credit card receivables also rose 23.7 percent annually, higher than the 2.2 percent year-on-year contraction registered a year ago, she added.
Credit card receivables also rose 23.7 percent annually, higher than the 2.2 percent year-on-year contraction registered a year ago, she added.
Fonacier also lauded how credit card companies are helping borrowers adversely affected by challenging economic circumstances.
Fonacier also lauded how credit card companies are helping borrowers adversely affected by challenging economic circumstances.
"As of end-July 2022, majority of restructured consumer loans were credit card receivables of P6 billion comprising 56.3 percent share,” she said.
"As of end-July 2022, majority of restructured consumer loans were credit card receivables of P6 billion comprising 56.3 percent share,” she said.
Credit Card Association of the Philippines Executive Director Alex Ilagan said credit card companies are doing their part in assisting distressed borrowers.
Credit Card Association of the Philippines Executive Director Alex Ilagan said credit card companies are doing their part in assisting distressed borrowers.
ADVERTISEMENT
"As the effects of the pandemic linger, CCAP and its members will continue to work together in offering more liberal debt restructuring/forbearance programs to allow cardholders in financial distress [to] repay their obligations and regain good credit standing,” Ilagan said.
"As the effects of the pandemic linger, CCAP and its members will continue to work together in offering more liberal debt restructuring/forbearance programs to allow cardholders in financial distress [to] repay their obligations and regain good credit standing,” Ilagan said.
Information campaigns to counter online/cyber fraud have also been initiated by the organization, he added.
Information campaigns to counter online/cyber fraud have also been initiated by the organization, he added.
Data from VISA covering Filipinos and their payment transactions in 2021, showed the drive toward cashless transactions has been accelerated by the COVID-19 pandemic.
Data from VISA covering Filipinos and their payment transactions in 2021, showed the drive toward cashless transactions has been accelerated by the COVID-19 pandemic.
Majority of the Filipino respondents actually expect the Philippines to be cashless within the next 7 to 10 years, with payments being done through credit cards, debit cards, payment apps, and QR codes.
Majority of the Filipino respondents actually expect the Philippines to be cashless within the next 7 to 10 years, with payments being done through credit cards, debit cards, payment apps, and QR codes.
RELATED VIDEO
ADVERTISEMENT
ADVERTISEMENT
