Annual growth in bank lending in June sustained its pace at 14.5 percent, with loans supportive of production activities accounting for the bulk, the central bank said on Friday.
Bangko Sentral ng Pilipinas (BSP) data showed outstanding loans granted by commercial banks—excluding reverse repurchase placements (RRPs) with the central bank or money lent to the BSP—maintained the same annual rate of growth as recorded in May.
Including the RRPs, however, bank lending rose by a slower 14.2 percent in June, compared with a revised 14.3-percent increase registered in May.
“On a month-on-month seasonally adjusted basis, commercial bank lending for loans net of RRPs and loans inclusive of RRPs both increased by 0.7 percent,” the BSP said in a statement.
Lending for production activities—which comprised more than 80 percent of the banks’ aggregate loan portfolio—grew 14.5 percent in June from 14.1 percent in May, the BSP said.
Growth in production loans was driven primarily by real estate activities, electricity, gas, steam, and airconditioning supply; wholesale and retail trade and repair of motor vehicles and motorcycles; manufacturing and financial insurance activities.
“Bank lending to other sectors, likewise, expanded during the month,” the BSP said.
Loans for household consumption slowed sharply to a 14.9 percent increase from a 20.5 percent rise in May. Sustaining their previous growth pace were 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,” the central bank added.