Banks’ foreign currency loans went up by over 5 percent in the second quarter of this year amid increased borrowing from export-oriented and other industries’ activities.

Data released by the Bangko Sentral ng Pilipinas (BSP) on Wednesday showed that foreign currency deposit units (FCDUs) loans increased to USD16.31 billion in the second quarter from USD15.44 billion in the previous quarter.

FCDUs conduct foreign currency transactions for local banks or local branches of foreign banks authorized to do so by the BSP.

These loans support economic activities that require foreign exchange, such as importers, businesses, and individuals with foreign currency transactions.

Compared to last year, FCDU loans also rose by 2.4 percent.

Of the total outstanding loans, USD11.65 billion, or 71.5 percent, was extended to Philippine-based borrowers.

Top Philippine-based borrowers include companies from towing, tanker, trucking, forwarding, personal and other industries, merchandise and service exporters, and power generation companies.

The BSP said most loans had maturities of more than one year, accounting for about 73.3 percent of the total.

Of the outstanding loans, USD11.99 billion was disbursed in the second quarter of 2026.

Banks, meanwhile, collected USD11.20 billion in loan payments in the same quarter.

BSP data showed that deposits in foreign currencies amounted to USD60.11 billion as of end-June, down by 0.9 percent from USD60.67 billion in the same period last year. (PNA)