The Chamber of Thrift Banks (CTB) said consumer lending should continue to be strong and that local interest rates were not likely to move up after the US Fed raised the federal funds rate from near-zero for the first time in seven years.
CTB President and RCBC Savings Bank President Rommel Latinazo said the market already previously factored the Fed rate hike.
“There may be immediate pressure on the peso but strong inflows at this time may taper it. Local interest rates may not immediately react gauging by Monetary Board decision to keep rates unchanged in the meantime. I believe lending will continue to be strong,” he told the BusinessMirror.
Latinazo said thrift banks have shown growth year-on-year because the economy is growing, businesses are also growing and consumer demands are increasing. The outlook on thrift bank sector is that it will “continue to grow in terms of loan portfolio and profits.”
RCBC Bankard Executive Vice President and Deputy Business Head Simon Javier Calasanz said it does not always follow that in a Fed rate adjustment the cost of money automatically increases, as well.
“Many economists are predicting the Bangko Sentral ng Pilipinas could keep rates steady until the first half of 2016, unless the US Fed does another round of increases,” he said.