Philippine central bank won't impose new lending restrictions

Real demand is seen behind growing demand for real-estate lending.

According to Maybank Kim Eng, central banks in the region have been imposing prudential measures related to consumer lending, particularly mortgage loans.

In comparison, the Philippine central bank, after reviewing the banking system’s total exposure to the property sector, has decided not to impose any new restrictions on lending. 

Here's more from Maybank Kim Eng:

This is because real demand is seen behind growing demand for real-estate lending, and also we believe, because Philippine household debt as a ratio to GDP at end-2012 is the lowest at 6% compared with 10% for Indonesia, 60% for Singapore, 78% for Thailand, and 81% for Malaysia.

Consequently, growth in the property and banking sectors will not be held back. We expect continued strong loan growth which we believe can offset volatile trading income.