Banks expect bigger consumer, corporate loans for 2018
Expansion plans and spending goals mean bigger loan applications.
Banks surveyed by the Bangko Sentral ng Pilipinas (BSP) said they expect stronger loan demand for the first quarter of 2018. Both corporate and retail clients are likely to borrow more this year as they sustain their expansion activities.
“Respondent banks cited expectations of higher investment in plant or equipment and increased working capital needs of clients, and improvement in the economic outlook of borrower firms as the key factors behind the expected increase in demand for business loans,” the BSP said in their latest report.
On the other hand, a more buoyant demand for household loans is also expected as individual borrowers are likely to avail of “more attractive” financing terms and low interest rates, coupled with stronger household spending.