MANILA, Philippines - Key players in the thrift banking industry expect a resurgence in lending this year as the economy recovers from the global financial crisis and demand for loans returns.

In a press briefing on Monday, the Chamber of Thrift Banks (CTB) said core lending growth, which includes micro, small and medium enterprises (MSMEs), housing and consumer loans, would likely hit 12% to 15%, a significant improvement from the 7.91% growth posted as of November 2009.

"In 2010, the economy is anticipated to grow well in what we hope are successful political exercises. There is actually renewed vigor in the MSMEs sector in particular, more demand for loans, retail trade and investments in tourism as well," said Pascual Garcia, CTB president.

Housing and MSME loans, which have comprised bulk of thrift banks' loan portfolios, are seen to post double-digit growths this year, compared to the single-digits in 2009, due to the crisis and the economic slowdown that followed. Housing loans alone accounted for 37.33% of the total loan portfolio of the industry in 2009.

Alfonso Salcedo, CTB trustee and also president of BPI Family Savings Bank, said that for BPI, housing loan growth would be in the double-digits. "We're looking at a 10-15% growth for the housing sector. Even across the country side, everyone's ramping up developments," he noted.

The officials stressed that although loan demand for housing, in particular, would likely spike this year, this would not likely result in any asset bubbles in the medium-term.

"The local banking industry has learned a lot from the Asian Financial Crisis and as long as current regulations stay in place, we don't see any asset bubbles, at least not in the next 18 months, because of prudent lending practices," Salcedo said.

Garcia noted that the main challenge for the industry this year would be the process and outcome of the May presidential elections. He said the elections would dictate the business and investing environment for the rest of the year.

"If all goes well, we're looking at a much stronger second half," he said.

The CTB will be gathering over 54 thrift banks nationwide in Makati City on March 12 for its annual convention. The theme of the year will be "leading the way towards sustained economic growth", highlighting the industry's commitment to provide support to MSMEs.