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BusinessWorld
June 1, 2021 | 12:33 am
BW FILE PHOTO
LENDING by big banks in April contracted by its fastest pace since 2004, reflecting the impact of the stricter lockdowns on both lenders and borrowers.
Outstanding loans by big banks dropped by 5% to P8.998 trillion in April from P9.474 trillion a year ago, based on preliminary data released by the Bangko Sentral ng Pilipinas (BSP) on Monday.
The April bank lending drop was faster than the 4.5% dip in March, and the fifth straight month of decline.
Before April, the steepest lending contraction was seen in May 2004, when bank lending shrank by 4.6%.
Inclusive of reverse repurchase agreements, outstanding loans extended by big banks fell by 2.9% in April from a 4.3% drop a month earlier.