Measures in place against property bubble as real estate loans rise – Bangko Sentral

 As bank lending to the real estate sector continue to grow, pre-emptive measures to ward off price asset bubbles are in place, a central bank official said told reporters over the weekend.

“We will not hesitate to tap options to prevent that,” Bangko Sentral Deputy Governor Diwa Guinigundo told reporters during the 11th Media Lecture Series in Mactan, Cebu.

“But we are not doing it at this point because the numbers still bear watching,” he said.

BSP data showed real estate loans increased by 23 percent to P831.787 billion as of end-2013, while the real estate credit-to-gross domestic product ratio stood at 6.1 percent against 5.5 percent in 2012.

According to BSP data, the share of real estate, renting and business services in total banks loans was at 18.5 percent as of February 2014. This was less than loans to the trade, transportation, storage and communications sector at 20.4 percent. — JDS/VS, GMA News

By: Danessa O. Rivera

GMA News, 27 April 2014