Bank lending in July grew 13.5 percent year-on-year, slowing slightly from a 14.5 percent increase in June, reflecting a moderation in lending for production activity, 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, rose 13.5 percent.
Including the reverse repurchase placements, bank lending eased to 13.4 percent, compared with a 14.2-percent increase the previous month.
Growth in production loans was driven primarily by real estate activity, electricity, gas, steam, and airconditioning supply; wholesale and retail trade and repair of motor vehicles and motorcycles; financial insurance activities; and manufacturing.
“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 4.5 percent and 15.1 percent, respectively,” the BSP said in a statement.
Loan growth for household consumption decelerated to 13.7 percent from 14.9 percent in June. 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.