PH banks turn more wary about lending to companies

  • 📰 inquirerdotnet
  • ⏱ Reading Time:
  • 33 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 16%
  • Publisher: 86%

South Africa News News

South Africa South Africa Latest News,South Africa South Africa Headlines

Companies may have a harder time taking out a loan in the first quarter of the year as banks are expected to further tighten their lending standards for businesses on reduced tolerance for risk. | RonWDomingoINQ /PDI

The fourth quarter 2022 survey showed a DI of 14.9, a slight increase from 14.6 in the previous quarter.Similar with results in the survey conducted three months earlier, the stricter lending process to business is seen being driven mainly by banks’ lower tolerance for risk and deterioration in borrowers’ profiles.

Net tightening of overall credit standards for businesses is reflected in, among others, stricter collateral requirements and loan covenants and reduced size of credit lines. The Philippine Statistics Authority reported that household spending on goods and services was the greatest contributor to the higher-than-expected growth rate of Philippine gross domestic product in 2022.Of the 7.6-percent growth rate recorded, based on preliminary data, household expenses accounted for 6.1 percentage points.However, lending standards in the fourth quarter of 2022 also became more strict compared to the third quarter when standards were eased.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

RonWDomingoINQ I Win This In Internet I Dont Yet Recieved My Price Yet...Hinahanapan Ninyo Ako Ng Pera…Ang Company Properties Ko Nga Parang Mga Walang Silbi.Hinde Ako Namimigay Ng Pera.I Own Only My Properties...

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 3. in ZA

South Africa South Africa Latest News, South Africa South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Why Coins Champion JP is keen on educating Filipinos about digital finance | BMPlusMost Filipinos dream of reaching financial freedom, whether it’s to retire early, be able to afford luxury items and travel the world, or simply give back to their families Know more:
Source: BusinessMirror - 🏆 19. / 59 Read more »