FCDU Lending Increased in Q3 2024

Outstanding loans granted by Foreign Currency Deposit Units (FCDU) of banks stood at US$15.75 billion as of end-September 2024, an increase of US$114.00 million or by 0.7 percent from the end-June 2024 level of US$15.63 billion as disbursements exceeded principal repayments.

Year-on-year, outstanding FCDU loans increased by US$246.04 million or by 1.6 percent from the end-September 2023 level of US$15.50 billion.

For the reference quarter, the maturity profile of the FCDU loan portfolio remained predominantly medium- to long-term [or those payable over a term of more than one (1) year], which comprised 77.3 percent of total, slightly higher than 76.7 percent from the previous quarter.

FCDU loans granted to residents stood at US$9.68 billion or 61.5 percent of total outstanding, of which majority went to the following sector/industries: merchandise and service exporters (US$2.49 billion or 25.7 percent); towing, tanker, trucking, forwarding, personal and other industries (US$2.08 billion or 21.5 percent); and power generation companies (US$1.92 billion or 19.9 percent).

Gross disbursements in the third quarter of 2024 reached US$21.77 billion higher by 9.4 percent than the previous quarter’s US$19.90 billion mainly due to the increase in funding requirements of a foreign bank branch affiliate. Similarly, loan repayments in the reference quarter of US$21.68 billion were 6.6 percent higher than previous quarter’s US$20.33 billion. These resulted in overall net disbursement.

FCDU deposit liabilities reached US$57.46 billion as of end-September 2024, higher by about US$2.31 billion (or by 4.2 percent) from the end-June 2024 level of US$55.16 billion.

The bulk of these deposits (US$56.12 billion or 97.7 percent) continued to be owned by residents, essentially constituting an additional buffer to the country’s gross international reserves.

Year-on-year, FCDU deposit liabilities increased by US$5.67 billion (or by 10.9 percent) from the end-September 2023 level of US$51.80 billion.