Bank Lending continues to grow

MANILA, Oct. 30 (PNA) — Growth of outstanding loans of commercial banks, net of reverse repurchase (RRP) placements with the BSP, slowed down to 12.5 percent in September from 14.1 percent in August. Meanwhile, bank lending inclusive of RRPs grew by 14.1 percent in September from 14.3 percent in the previous month. On a month-on-month seasonally-adjusted basis, commercial bank lending increased by 0.5 percent for loans net of RRPs and by 1.8 percent for loans inclusive of RRPs.

Loans for production activities—which comprised more than 80.0 percent of banks’ aggregate loan portfolio—grew by 13.0 percent in September from 13.8 percent in August. The expansion in production loans was driven primarily by increased lending to the following sectors: real estate activities (20.3 percent); electricity, gas, steam and airconditioning supply (26.8 percent); wholesale and retail trade, and repair of motor vehicles and motorcycles (13.7 percent); and financial and insurance activities (15.6 percent). Bank lending to other sectors likewise expanded during the month except for transportation and storage, and manufacturing, which declined by 0.1 percent and 2.1 percent, respectively.

Loans for household consumption grew by 12.0 percent in September from 14.0 percent in August due to sustained growth in credit card loans and auto loans.

Going forward, the BSP will continue to ensure that domestic credit and liquidity conditions will keep pace with overall economic growth while remaining consistent with its price and financial stability objectives.(PNA)