Bank lending grew at a slightly slower pace of 13.6 percent in November from 13.9 percent a month earlier, the Bangko Sentral ng Pilipinas said on Tuesday, as loans for production activities moderated amid continued expansion in household consumption.
Including reverse repurchase placements (RRPs) with the central bank, lending growth on a year-on-year basis also eased to 13.2 percent compared to the 13.6 percent recorded in October.
Month-on-month and seasonally-adjusted, commercial bank lending increased by 0.9 percent for loans net of RRPs and by 0.7 percent for loans inclusive of RRPs.
Lending for production activities, which comprised over 80 percent of the aggregate loan portfolio, grew by 14.1 percent from October’s revised 14.4 percent.
This was driven primarily by real estate activities, which accounted for 21.8 percent, followed by electricity, gas, steam and air-conditioning supplies (27.8 percent); wholesale and retail trade, and repair of motor vehicles and motorcycles, (13.9 percent); financial insurance activities (15.2 percent); and construction (29.7 percent).
“Bank lending to other sectors, likewise, expanded during the month except for professional, scientific and technical activities, which declined by 27.5 percent,” the central bank said.
Loans for household consumption, meanwhile, grew by 13.3 percent, up from the 12.8 percent in October, “due primarily to the increase of credit card loans, auto loans, and salary-based general purpose consumption loans, which offset the contraction in other types of 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,” the central bank said.