DOMESTIC liquidity expanded further in September as claims posted growth during the month, data released by the Bangko Sentral ng Pilipinas (BSP) yesterday showed.
Preliminary data showed that domestic liquidity or M3 — the broadest measure of money in the financial system — stood at P16.597 trillion in September, reflecting a 7.9% increase from P15.389 trillion in the previous year.
This is also 0.8% higher than the P15.991 trillion recorded in August 2023, which was 6.8% higher than P15.416 trillion the past year.
Domestic claims for the month grew by 9.5% to P17.624 trillion, as net claims on the central government climbed by 19.2% to P4.830 trillion, while claims on other sectors increased by 6.3% to P12.794 trillion.
The same data showed that net foreign assets rose by 1.0% to P6.403 trillion, with the central bank accounting for P5.571 trillion while other depository corporations accounted for P831.873 billion.
“Looking ahead, the BSP will continue to ensure that domestic liquidity conditions remain in line with the prevailing stance of monetary policy, consistent with its price and financial stability objectives,” the BSP said in an emailed statement.
Bank Lending
Preliminary data also showed that outstanding loans of universal and commercial banks, net of reverse repurchase (RRP) placements with the BSP, grew by 6.5% to P11.174 trillion in September from P10.496 trillion the past year.
Outstanding loans to residents net of RRPs jumped 6.6% to P10.848 trillion, with production for economic activity accounting for P9.654 trillion.
This comes on the back of the growth in credit to major sectors such as real estate up 5.0%; electricity, gas, steam, and air-conditioning supply up 9.2%; wholesale and retail trade, and repair of motor vehicles and motorcycles up 6.6%; financial and insurance activities up 4.9%; and information and communication up 8.1%.
Consumer loans increased by 23.5% to P1.193 trillion, driven largely by the sustained growth in credit card loans and faster expansion in motor vehicle loans during the period.
“(T)he BSP will continue to ensure that domestic liquidity and credit conditions are in line with its price and financial stability,” the central bank said. (GMA Integrated News)
