Banks’ bad loans rise as loss buffers fall

Bangko Sentral ng Pilipinas

MANILA, Philippines – Philippine banks’ bad loan ratio rose to a nine-month high in May as borrowers continued to feel the sting of inflation, slow economic growth and higher borrowing costs amid the war in the Middle East.

Nonperforming loans (NPL), or debts overdue by at least 90 days and at risk of default, accounted for 3.44 percent of the local banking sector’s total lending portfolio during the month, figures from the Bangko Sentral ng Pilipinas (BSP) showed.

READ: PH banks’ bad loan ratio rises to 8-mo high

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