BANK LENDING and domestic liquidity recorded double-digit growth in July this year, data from the Bangko Sentral ng Pilipinas (BSP) showed.
The central bank said loans from universal and commercial banks (U/KBs) grew at a faster pace of 10.4 percent in July from 9.8 percent in June.
The BSP said the faster growth reflects sustained lending to businesses and consumers.
Outstanding loans issued by U/KBs amounted to P14.98 trillion.
Loans for business activities accelerated to 9.8 percent from 9.2 percent in June amid increased lending to key sectors, such as electricity, gas, steam, and air-conditioning supply, wholesale and retail trade, repair of motor vehicles and motorcycles, financial and insurance activities, and information and communication.
Consumer loans to residents, however, slowed to 17.1 percent in July from 17.8 percent in June as growth in credit and motor vehicle loans softened due to weak consumer confidence.
The BSP said it monitors bank loans because they are a key transmission channel of monetary policy.
Meanwhile, domestic liquidity increased by 10.3 percent to P20.5 trillion, continuing to support economic activity.
M3 is a broad measure of money supply that includes currency in circulation, bank deposits, and other financial assets that are readily convertible to cash.
The BSP said M3 growth in July was driven by borrowings from both the private and public sectors.
“Bank lending continued to channel funds to production sectors and households. The national government’s issuance of debt securities and withdrawal of deposits from the BSP and banks to finance spending also supported domestic liquidity growth,” the BSP said.
The central bank said it will continue to ensure that domestic liquidity conditions remain consistent with price and financial stability objectives. (PNA)
