Philippines eyes double-digit bank lending growth in 2010

Bankers cited estimated 4% GDP growth powered by consumption-driven economic expansion as cause.

Aurelio Montinola III, president of BAP and chief executive of Bank of the Philippine Islands (BPI), said the operating environment for banks should be better this year, with the domestic economy likely to grow at around 4 percent.

"We're confident that it will be a good year for banks," he told reporters at the sidelines of the inauguration of the main office of BPI Globe BanKO, the Ayala Group's mobile savings bank for microfinance, in Greenhills.

Montinola believes the industry will be able to post "double-digit growth" in lending this year, with banks expected to take advantage of the consumption-driven economic expansion.

The Philippine economy is widely expected to grow by at least 3 percent this year, driven by domestic demand that is expected to remain supported by remittances from Filipinos abroad.

Consumer and government spending prevented the economy from contracting last year, with the gross domestic product growing a modest 0.9 percent.

The Bangko Sentral ng Pilipinas (BSP) has projected a 6 percent growth in remittances this year. Money sent home by overseas-based Filipinos through banks last year increased 5.6 percent to $17.3 billion.

View the full story in Business Mirror.