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Bad loans of rural, co-op banks declining, says BSP.

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| May 01, 2004 | COPYRIGHT 2004 Financial Times Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

(From Philippine Daily Inquirer)

Byline: Doris C. Dumlao

THE NON-PERFORMING loans of rural banks and cooperative banks as a ratio of their total loans declined to 11.92 percent in the last quarter of 2003, from 13.4 percent in the previous quarter.

The Bangko Sentral ng Pilipinas yesterday said the decline in the NPL ratio of these banks was brought about by the 9.4-percent reduction in their actual NPLs to P6.58 billion as well as the 1.9 percent expansion in their total loan portfolio to P55.24 billion.

The sector's 11.92-percent NPL ratio as of end-2003 likewise represented a significant improvement over the 13.85 percent as of end-2002.

"The improvement in the NPL ratio was evident across the three major geographical regions of Luzon, Visayas and Mindanao," the BSP said.

The Visayas region enjoyed the biggest drop in the NPL ratio from the previous quarter of 2.25 percentage points to 12.9 percent; followed by Luzon, 1.57 percentage points to 12.26 percent, and Mindanao, 0.71 percentage ...

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