The Bangko Sentral ng Pilipinas (BSP) has started training a keen eye on fast-rising consumer loans, particularly the credit extended to finance auto and credit-card sales.
In a public forum in Makati City on Wednesday, BSP Deputy Governor for the Monetary Stability Sector Diwa C. Guinigundo said the close monitoring forms part of the larger effort to ensure consumer loans will not get “out of hand.”
Consumer loans are loans extended to individuals. Consumer loans as measured by the central bank, are the sum of all auto, credit card, residential real estate and salary loans.
Latest data show the banks extended P68.155 billion worth of consumption loans from April to June this year. Consumption loans grew 9.27 percent quarter on quarter, from P735.102 billion in the first quarter to P803.257 billion in the second quarter.
“Right now we don’t see any risks on consumer loans together with credit-card receivables and auto loans. To sum it up and relate that to the total portfolio of the banking system, the number still is a very small amount,” Guinigundo said.
“The point that concerns us is the growth rate of consumer loans plus credit-card receivables and auto loans. It’s been rising,” he said.
This development is something the BSP is monitoring carefully to ensure consumer loans do not get out of hand.
He also said there are prudential measures in place to regulate consumer loans, such as the implementation of a maximum ceiling and collateral valuation.