Real estate loans up 23% in first half

LOCAL BANKS’ exposure to the real estate sector grew by close to a quarter at the end of the first half, boosted by loans extended in the period despite the tightening of lending standards for residential and commercial borrowers, central bank data showed.

Data released yesterday by the Bangko Sentral ng Pilipinas (BSP) showed that total exposure of universal, commercial and thrift banks to the real estate sector reached P377.8 billion at the end of June.

This was a 2.8% expansion from the P367.6 billion recorded at the end of March, and a 23.3% growth over the P306.3 billion in June of last year.

Banks’ exposure to real estate is composed of loans for commercial and residential purposes and investments in securities issued by real estate firms.

http://www.bworldonline.com/BW091109/content.php?id=021&src=2