Incoming Philippines c.bank chief says concerned about rapid credit growth
It's great to see more and more loans going out to real estate as long as proper care and checks on capacity to pay have been made. Hopefully the capacity to pay has the foundation of businesses that are sustainable or as the article mentions are not vulnerable to cyclical turns.
Bank lending in the Southeast Asian nation has been rising at a double-digit pace for at least nearly two years now. In April, it grew an annual 19.2 percent, with the bulk of loans going to real estate, manufacturing and information and communication.
"We are closely monitoring these developments," Espenilla said. "These can lead to problems if credit is supporting businesses that may be more vulnerable to cyclical turns."