BANK lending grew 7.2 percent in August compared to the same month last year, the Bangko Sentral ng Pilipinas (BSP) said yesterday.
“On a month-on-month seasonally-adjusted basis, outstanding universal and commercial bank loans, net of RRPs [reverse repurchase placements], expanded by 0.6 percent,” the BSP said.
Outstanding loans to residents, net of RRPs, also grew by 7.2 percent in August from 7.7 percent in July.
Loans to consumers were broadly steady, growing 22.7 percent in August from 22.6 percent in July, due mainly to the growth in credit card and motor vehicle loans, the BSP added.
The central bank however also noted that growth in outstanding loans for production activities slowed to 5.5 percent in August from 6.2 percent in the previous month.
This was despite the sustained expansion in lending to key industries such as real estate (5.7 percent); electricity, gas, steam, and airconditioning supply (9.0 percent); wholesale and retail trade, and repair of motor vehicles and motorcycles (7.1 percent); information and communication (10.7 percent); and financial and insurance activities (6.1 percent).
Bank lending had been slowing in the previous months amid high interest rates.
Meanwhile, domestic liquidity also grew at an annual 6.8 percent in August.
“Preliminary data showed that domestic liquidity (M3) grew by 6.8 percent year-on-year to about P16.5 trillion in August from 5.7 percent in July. On a month-on-month seasonally-adjusted basis, M3 increased by about 1.6 percent.”
The BSP kept its benchmark rate at 6.25 percent in its last policy-setting meeting despite inflation quickening in August after easing for six straight months. (ABS-CBN News)
