Connect with us

Hi, what are you looking for?


Quasi-lenders’ loan portfolio drops in 1st half

THE LENDING portfolio of nonbank financial institutions with quasi-banking functions (NBQBs) dropped in the first half of the year as players merged or gave up their licenses, an official from the Bangko Sentral ng Pilipinas (BSP) said.

“As of end-June 2020, the NBQBs’ total loan portfolio (TLP) dropped by 33.6% year on year to P133.4 billion following merger and/or surrender of QB license of certain entities resulting from a review of strategic direction and business operations,” BSP Managing Director for Policy and Specialized Supervision Lyn I. Javier said in an e-mail.

Quasi-banks include financing companies and investment houses.

This also affected total operating income of NBQBs, which plummeted 70.8% to P3.9 billion.

“The decline is also partly influenced by the drop in non-interest income, particularly trading income,” Ms. Javier said.

Like their bank counterparts, quasi-lenders also saw a higher nonperforming loan (NPL) ratio amid the impact of the pandemic. The industry’s NPL ratio picked up to 5.8% as of end-June from 4.4% a year ago.

“The current NPL ratio is higher than the Philippine banking system’s estimated NPL ratio of 4.6% by end-December 2020.  Nevertheless, we expect that the NBQB’s NPL ratio will remain manageable in the next two years,” Ms. Javier said.

The Philippine banking system’s bad loan ratio stood at 3.4% as of end-September, already the highest since the 3.42% NPL ratio logged in May 2013.

The BSP will remain watchful of the NPL ratio of quasi-lenders amid the current crisis, said Ms. Javier.

“The NBQB industry is expected to remain stable as most of the financing companies and investment houses with QB license are linked with universal and commercial banks hence, governed by the same set of risk management standards,” she said. — L.W.T. Noble

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



GROSS BORROWINGS by the National Government had reached P2.75 trillion as of end-October as it continued to raise money for its pandemic response, preliminary...


By Luz Wendy T. Noble, Reporter THE PHILIPPINE Statistics Authority (PSA) said the base year for the consumer price index (CPI) will change to...


SOME INDIAN COMPANIES, including those from the pharmaceutical industry, are interested in investing in economic zones in the Philippines, according to an India Business...


By Keren Concepcion G. Valmonte, Reporter HOSPITALITY GROUPS expect a rebound in tourism as coronavirus disease 2019 (COVID-19) vaccination rates continue to improve and...


BUSINESSWORLD’s Luz Wendy T. Noble was recognized as the Best Reporter of the Year for Banking at the 30th annual awards of the Economic...


THE Securities and Exchange Commission (SEC) has flagged eight more entities in separate advisories for their unregistered investment solicitation programs. These offerings are PH...

You May Also Like


Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...


Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...


As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...


Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...

Disclaimer:, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.