Philippine banks' real estate exposure reaches PHP821.7b

It surpassed the 20% cap on real estate loans.

According to Maybank Kim Eng, the Philippine central bank released the result of the banking sector’s expanded real estate exposure, which reached PHP821.7b or 20.9% of total loan portfolio.

Here's more from Maybank Kim Eng:

This is slightly above the 20% cap on real estate loans (REL) out of total loans imposed on universal and commercial banks.

The new data is also higher by PHP260b or 46% than the last data released in June 2012 which show real estate loans at PHP561.6b.

The BSP stresses there’s no imminent concern of an asset price bubble despite the breach in loan limits, which was imposed 16 years ago, and will be reviewed to address robust demand amid a strong domestic economy. We expect prudential measures to be set on the property segment.