Banks’ FCDU loans slip to $15.4 billion in end-March

MANILA, Philippines — Foreign currency deposit unit (FCDU) loans granted by banks slipped by 0.8 percent to $15.44 billion in end-March from $15.56 billion in end-December, preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed.

Of the total outstanding loans in the first quarter, $10.44 billion or 67.6 percent went to Philippine residents, while nearly $5 billion or 32.4 percent went to non-residents.

FCDU loans are foreign currency-denominated credit extended by local banks or by local branches of foreign banks authorized by the BSP.

These facilities are meant to support economic activities that require foreign exchange, including importers, exporters and other businesses engaged in international trade.

Among local borrowers, merchandise and service exporters accounted for the largest share with $2.75 billion at 26.4 percent, followed by towing, tanker, trucking, forwarding, personal and other industries at $2.51 billion (24 percent) as well as power generation companies with $1.85 billion (17.7 percent).

In terms of maturity, medium- to long-term loans comprised 77.1 percent of the total, lower than the 79.2 percent in the previous quarter.

Short-term loans made up the remaining 22.9 percent.

BSP data also showed that outstanding FCDU loans reflected $8.25 billion in new loans granted and $8.36 billion in loan repayments made during the reference quarter.

Year-on-year, FCDU loans likewise dipped by 2.2 percent from the $15.78 billion posted as of end-March 2025.

The contraction came alongside a 3.1 percent increase in foreign currency deposits, which stood at $60.77 billion as of end-March from $58.92 billion in the same period in 2025.

By creditor type, local banks continued to dominate with $12.89 billion or 83.5 percent of the total, while foreign bank branches and subsidiaries accounted for $2.55 billion or 16.5 percent.

The BSP reported an overall loans-to-deposits ratio of 25.4 percent as of end-March, lower than 26 percent in end-December and 26.8 percent a year earlier.