Model debtors are found in Mindanao

THE most conscientious borrowers from rural and cooperative banks do not hail from Luzon or the Visayas but from Mindanao. “Rural and cooperative banks in Mindanao continued to have the lowest nonperforming loan ratio at 8.98 percent, down from three months earlier of 9.88 percent, compared to Luzon and the Visayas, which posted relatively higher ratios of 11.4 percent and 12.25 percent, respectively,” said BSP governor Amando Tetangco Jr. in a statement. Luzon and Visayas-based rural and cooperative banks had NPLs averaging 11.7 percent and 12.25 percent, respectively, at end-September 2006. These developments allowed the industry’s overall NPL ratio to move down more than half a percent to 11.07 percent from 11.63 percent three months earlier. The fall in NPLs was complemented by a P2.8-billion increase in total loan portfolio to P81.72 billion from a year ago of P71.7 billion and P79 billion three months earlier. --J. Vallecera

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