Bank loans to agrarian reform and agriculture sector increased 3 percent in third quarter from the second quarter, but remained below the required 25 percent of banks’ loanable funds, Bangko Sentral ng Pilipinas data show.
Data showed that of the total loanable funds of P3.131 trillion in the third quarter, banks’ lending to the agrarian reform sector only reached P29.979 billion or 0.96 percent, below the mandated 10 percent or P313.192 billion.
Banks’ agricultural credit amounted to P405.781 billion or just 12.96 percent of the total loanable funds, still below the required 15 percent or P469.788 billion.
As a result, banks’ total compliance to the agri-agra credit only reached P435.76 billion, lower than the required 25 percent of the total loanable funds of P3.131 trillion, or P782.98 billion.
Lending of universal and commercial banks to agrarian reform in the third quarter reached P18.925 billion, or just 0.64 percent of their total loanable funds of P2.939 trillion. This was below the mandated 10 percent or P293.964 billion.