Bad loans in the Philippine banking system climbed to a nine-month high in August, marking a concerning trend for the country’s financial sector.
Lenders, squeezed by narrower margins due to falling interest rates, may have turned to riskier retail borrowers in search of higher returns. This shift could be a contributing factor to the rise in nonperforming loans (NPLs).
Latest data from the Bangko Sentral ng Pilipinas showed that nonperforming loans—debts overdue by at least 90 days—have increased significantly, signaling potential challenges ahead for both banks and borrowers alike.
https://business.inquirer.net/552316/bad-bank-loans-climbed-to-nine-month-high-in-august
