BSP lists financial markers to back economic growth in the Visayas

Rosabel Guerrero, director of the BSP’s department of economic statistics, gives a presentation on development indicators in the Visayas.

INCREASING available financial resources and stable inflation were seen to support sustained economic expansion in the Visayas for 2017, an official of the Bangko Sentral ng Pilipinas (BSP) said.

Rosabel Guerrero, director of the BSP’s department of economic statistics, said financial resources continue to expand with the opening of more banks and more loans granted by banks across all regions in the Visayas in 2016 and the first quarter of 2017.

“But efforts focused on job creation and provision of more loans could help accelerate economic growth and improve living conditions of the jobless and small businesses,” said Guerrero in a presentation to stakeholders during the BSP Cebu regional office’s 2017 Awards Ceremony and Appreciation Lunch last Tuesday.

The number of Philippine Banking System (PBS) branch offices nationwide increased to 10,630 in March this year from 10,178 over the same period last year, Guerrero revealed in her presentation.

In Central Visayas, she said, the number of PBS branch offices increased to 605 from 591 during the covered period. The same trend is mirrored in the number of universal and commercial banks (358 to 360); as well as rural and cooperative banks (114 to 128). The number of thrift banks in the region, however, slipped to 117 in March this year from 119 a year ago.

On the other hand, the total number of on-site and off-site Automated Teller Machines (ATM) in the region increased from 1,235 in March 2016 to 1,319 in March 2017.

Net loan portfolio in Central Visayas as of end-2016 also grew faster by 15 percent from the 13 percent growth rate recorded in 2015.

Deposit liabilities, meanwhile, grew by 16 percent in 2016 from 1.2 percent in 2015.

The Visayas economy expanded at 8.5 percent in 2016, faster than the 6.1 percent growth rate posted in 2015.

Fastest in growth

According to Guerrero, the economy of Central Visayas grew fastest among the regions in the Visayas group of islands at 8.8 percent last year, fueled by the expansion of the industry and services sectors.

Inflation in Central Visayas was also low between January and July this year at 3.2 percent and was well within the government’s target for the whole 2017, yet higher than the 2.9 percent recorded in the same period in 2016.

For July 2017 alone, the inflation was lower at 3 percent compared to the 3.4 percent posted in the same month last year, said Guerrero.

Cebu Bankers Club (CBC) past president Maximo Rey Eleccion, in a separate interview, said Central Visayas figures have always been higher than the national figures.

“Cebu and the rest of Central Visayas are always a good choice for business location and expansion. More and more investors, local and foreign come here to do business,” he said.

The growth, both in deposits and loans of Central Visayas-based banks is a testament of client confidence in the banking system.

“This is an increase in economic activity, thus, promoting further growth of the region and the country as a whole,” he said.