With improving liquidity due to increasing deposits from the public and growing profitability "and as shown by the more than P1.5 trillion in funds deposited by banks in the Bangko Sentral ng Pilipinas (BSP) special deposit account facility" the BSP called on banks to increase lending to tourism and business process outsourcing (BPO), both considered high growth industries in the Philippines. Lending more to these sectors can potentially increase the banks' income even more for 2012.
In an interview with Philippine Daily Inquirer's Michelle Remo, BSP Governor Amando Tetangco Jr. said that there are opportunities for banks to lend to tourism and BPO sectors.
"Liquidity is available, and banks can use this to lend to tourism, BPO and other sectors," the BSP Governor said in a briefing after the government's economic forum.
Tetangco said that the banking sector can maximize the benefits of this substantial liquidity by lending more to tourism and BPO enterprises.
The tourism industry, with the country's many tourist destinations, has considerable room for growth according to government economic managers. The BPO industry, on the other hand, has seen significant growth over the years and is expected to grow even more.
The BSP Governor said that lending is one of the best ways to support the growth of industries. The BSP, however, cautions banks to maintain low exposure to loan defaults. Tetangco said that while increasing lending to businesses in the tourism and BPO sectors, banks should always practice prudent lending standards which include careful assessment of creditworthiness. (30)