Thanks to higher inventory.
Central bank data in the Philippines, based on the modal approach, shows credit standards for loans to enterprises and households remained unchanged.
According to a research note from Maybank Kim Eng, however, using the diffusion index approach, data shows a net tightening of overall credit standards.
The tighter standards were attributed to banks' reduced tolerance for risk and perception of stricter financial system regulations.
Here's more from Maybank Kim Eng:
Lending to households indicate stricter collateral requirement as well as wider loan margins for housing and auto loans.
In particular, respondent banks also cited reduced credit line sizes and shorter maturities for commercial real estate loans.
Most banks anticipate unchanged credit standards next quarter while some expect a slight easing for loans to businesses and continued tightening for credit card, auto and salary loans.
Looking ahead, banks also expect an increase in loan demand due to higher inventory and working capital financing requirement along with the improved economic outlook.
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