Banks' real estate exposure climbs
Mar 23, 2022
According to the most recent Bangko Sentral ng Pilipinas (BSP) data, banks and trust departments' real estate exposure increased to P2.86 trillion as of end-December 2021 from P2.62 trillion the previous year.
Of the total, 85.72 percent was made up of real estate loans, with the remaining 14.27 percent made up of financial investments.
The loan component of the total exposure expanded 7.30 percent to P2.45 trillion from P2.29 trillion a year ago. Borrowers purchasing residential properties received 36.45 percent of all loans while commercial real estate loans received 63.55 percent.
Commercial real estate loans saw an uptick of 7.20 percent year on year to P1.55 trillion at end-2021 from P1.45 trillion. Meanwhile, residential real estate loans soared 7.48 percent year on year to P896.13 billion from P833.73 billion at end-2020.
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