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June 23, 2024

Survey says banks interested in lending more to agri sector

A recent survey by the Department of Agriculture (DA) and the Bangko Sentral ng Pilipinas (BSP) showed that most banks are planning to expand lending to the agriculture sector in the next 12 months.

The DA and the BSP recently conducted a survey to assess banks’ plans to expand lending to the agriculture sector. The results, which were published in the 2021 Countryside Bank Survey, showed that 76% of the respondent banks plan to increase their agricultural loan portfolio over the next 12 months. Thrift banks showed the most interest in lending, with 93% of respondents indicating plans to expand, followed by 87% of state-owned banks and 72% of rural and cooperative banks. In contrast, only 53% of universal and commercial banks confirmed expansion plans, with nearly half stating no intentions to increase their agricultural lending. According to the report, the banks’ interest in lending to the agriculture sector is driven by the sector’s potential for growth and development, as well as the opportunity to support financing for affected borrowers. About 62% of the respondent banks revealed a positive outlook for higher demand for agricultural loans in 2022, according to the BSP.