BANK lending grew at a slower pace in March this year as outstanding loans to residents decelerated while loans to non-residents continued to contract, preliminary data released by the Bangko Sentral ng Pilipinas (BSP) yesterday showed.
Bank lending, net of RRPs with the BSP, posted an 11.8% annual growth in March to reflect a deceleration from the 12.2% expansion in February. Growth for March was recorded at 0.9% on a month-on-month seasonally-adjusted basis.
Outstanding loans to residents also slowed to 12.3% from 12.6%, while outstanding loans to non-residents declined by 5.6% after the 3.2% drop in the previous month.
Loans for production activities rose by 10.9%, down from 11.2% the previous month, which the central bank attributed to the slower expansion in real estate activities (9.6%); wholesale and retail trade, repair of motor vehicles and motorcycles (11.6%); and information and communication (8.9%).
Slower growths were also seen in construction (1.8%); arts, entertainment, and recreation (12.6%); water supply, sewerage, waste management, and remediation activities (12.9%); and accommodation and food service activities (19.3%).
Consumer loans to residents expanded by 23.6%, down from 24.1% in February, on higher credit card loans, motor vehicle loans, and salary-based general purpose consumption loans.
“Looking ahead, the BSP will ensure that domestic liquidity and bank lending conditions remain consistent with its price and financial stability objectives,” the BSP said. (GMA Integrated News)
