Data from the country’s central bank, Bangko Sentral ng Pilipinas (BSP), showed that outstanding loans of commercial banks in the Philippines grew further in October, from a month earlier.
Preliminary data showed that outstanding loans of commercial banks, net of reverse repurchase (RRP) placements with the BSP, grew at a slightly faster rate of 18.1 per cent in October from 17.6 per cent (revised) in September.
Likewise, the growth in bank lending inclusive of RRPs accelerated to 17.9 per cent in October from 16.5 per cent (revised) in the previous month.
On a month-on-month seasonally-adjusted basis, commercial bank loans net of RRPs and loans inclusive of RRPs increased by 1.1 per cent and 1.0 per cent, respectively.
Loans for production activities—which comprised 88.7 per cent of banks’ aggregate loan portfolio, net of RRP — increased at a brisker pace at 18.7 per cent in October from 17.4 per cent (revised) in the previous month.
The growth in production loans was driven primarily by increased lending to the following sectors: financial and insurance activities (32.0 per cent); wholesale and retail trade, repair of motor vehicles and motorcycles (19.9 per cent); real estate activities (15.4 per cent); manufacturing (20.6 per cent); electricity, gas, steam and airconditioning supply (11.9 per cent); and, construction (39.1 per cent).
Bank lending to other sectors also increased during the month.
Meanwhile, the growth of loans for household consumption slowed down to 14.6 per cent in October from 18.2 per cent (revised) in the previous month due to the slower expansion in credit card loans and motor vehicle loans as well as the contraction in salary-based general purpose consumption loans and other types of household loans.
The BSP will continue to ensure that the expansion in domestic credit and liquidity proceeds in line with overall economic growth while remaining consistent with the BSP’s price and financial stability objectives.