BANK lending and domestic liquidity were both up again in September this year, the Bangko Sentral ng Pilipinas (BSP) said Thursday, November 6.
The BSP said that, based on preliminary data, lending by universal and commercial banks grew by 10.5 percent year-on-year, slightly slower than the 11.2 percent in August.
Outstanding loans to residents climbed by 10.9 percent in September, a bit slower compared to the 11.6 percent in August. Meanwhile, outstanding loans to non-residents fell by 2.9 percent in August, after a faster drop of 5.9 percent the month before.
Consumer loans to residents — which include credit card, motor vehicle, and general-purpose salary loans — increased by 23.5 percent from 23.9 percent.
Business loans, meanwhile, reached 9.1 percent in September from 9.9 percent in August. Most of the loans went to businesses in real estate (9.2 percent); electricity, gas, steam, and air-conditioning supply (27.1 percent); wholesale and retail trade, repair of motor vehicles and motorcycles (9.1 percent); financial and insurance activities (8.8 percent); information and communication (8.6 percent); and transportation and storage (15.4 percent).
Domestic liquidity (M3) grew by 7.3 percent year-on-year to about P18.9 trillion in September from 6.6 percent in August. On a month-on-month seasonally adjusted basis, M3 increased marginally by 1.2 percent.
The BSP said it will continue to ensure that domestic liquidity conditions remain consistent with monetary policy. The BSP in August reduced its benchmark rate further by 25 basis points, bringing the target overnight reverse repurchase rate to 5 percent. (ABS-CBN News)
