Bank lending picked up to 14.1 percent from July’s revised 13.6 percent, the Bangko Sentral ng Pilipinas (BSP) yesterday reported, driven by increased loans for production activities.
Including reverse repurchase placements (RRPs) with the central bank, the year-on-year gain was 14.3 percent compared to 13.6 percent the previous month.
Month-on-month and seasonally-adjusted, commercial bank lending increased by 1.4 percent for loans net of RRPs and by 1.2 percent for loans inclusive of RRPs
Loans for production activities, which comprised over 80 percent of the aggregate loan portfolio, grew by 13.8 percent in August from 13.4 percent in July.
This BSP said this was driven primarily by real estate activities, which accounted for 14.9 percent; electricity, gas, steam, and air-conditioning supplies (25.6%); wholesale and retail trade, and repair of motor vehicles and motorcycles (15.5 percent); financial insurance activities (15.3 percent); and manufacturing (5.8 percent).
“Bank lending to other sectors, likewise, expanded during the month except for transportation and storage, and other community, social and personal activities, which declined by 5.2 percent and 17.2 percent, respectively,” the central bank added.
Loans for household consumption grew by 14 percent, down slightly from the revised 14.3 percent in July. The BSP said the growth was supported by credit card loans, auto loans and salary loans.
“Going forward, the BSP will continue to ensure that domestic credit and liquidity conditions will keep pace with overall economic growth while remaining consistent with its price and financial stability objectives,” it said.