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Bank lending not likely to pick up this semester.
(From BusinessWorld (Philippines))
Byline: Norman P. Aquino
The Bangko Sentral ng Pilipinas (BSP) does not expect bank lending to pick up substantially for the rest of the year despite low interest rates and sufficient liquidity in the financial system.
Central bank governor Rafael B. Buenaventura said a 5% loan growth for the full year is good enough given weak demand for credit.
"That's big enough," the BSP chief said in an interview.
Lending has been affected by weak demand for credit. It could well be that corporate demand for new loans has been held back by companies' need to manage cash flows to finance maturing obligations …
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