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Banks continue tight lending standards – BSP survey

Banks lending standards unchanged in 2020 – Manila Bulletin

Published January 21, 2021, 6:11 PM Banks have maintained their credit or lending standards during the first pandemic year, according to a survey regularly conducted by the Bangko Sentral ng Pilipinas (BSP). Based on the BSP’s fourth quarter 2020 Senior Bank Loan Officers’ Survey (SLOS), majority of banks did not change their overall credit standards for loans to both enterprises and households as per the modal approach, one of two models used by the BSP, the other one being the diffusion index (DI).  “The latest survey results reflected a slight improvement compared to the third quarter 2020 survey where almost half of the respondent banks stated that they tightened credit standards amid the continued economic and business disruptions caused by the ongoing COVID-19 pandemic,” said the BSP.

Inflation to quicken in 2021, stabilize in 2022

endIndex: Metro Manila (CNN Philippines, January 21)  Economists expect inflation to pick up in 2021 from 2020 s full-year average and get steady in 2022, a survey conducted by the Bangko Sentral ng Pilipinas revealed. Analysts expect inflation to remain benign in the near term, with risks to the inflation outlook tilted to the upside as the economy gradually reopens, read the BSP s latest quarterly inflation report. 24 firms took part in the recent survey, with their forecasts for 2021 averaging 2.9%. This is quicker than the mean forecast of 2.8% featured in the previous report. The same set of economists logged an average of 3% in their inflation forecasts, similar to the mean forecast they yielded in the report prior.

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