Bank lending sustained its rapid growth in April as loans for productive sectors of the economy rose further, providing support to the growth momentum of the economy, the central bank said.
Data released by the Bangko Sentral ng Pilipinas (BSP) on Friday showed outstanding loans granted by commercial banks, net of reverse repurchase (RRP) placements with the central bank, increased 20.9 percent in April following a 20-percent increase the previous month.
Bank lending—inclusive of RRPs—expanded at a faster pace of 19.4 percent from the 18.3 percent recorded the preceding month. On a seasonally adjusted basis, commercial bank lending increased by 1.1 percent for loans net of RRPs month-on-month and by 1.3 percent for loans inclusive of RRPs.
“The continued expansion in bank lending across sectors is expected to support the growth momentum of the economy. Going forward, the BSP will continue to closely monitor credit and liquidity conditions and deploy appropriate measures as necessary to ensure that the monetary environment remains consistent with its price and financial stability objectives,” the central bank said.
Comprising more than four-fifths of banks’ aggregate loan portfolio, loans for production activities grew further by 18.9 percent in April from 18.1 percent in March.
The central bank said the expansion in production loans was driven primarily by increased lending to real estate, renting, and business services; electricity, gas and water; wholesale and retail trade; manufacturing; and financial intermediation.
“Bank lending to other sectors also posted positive growth rates during the month, except for public administration and defense, which declined by 1.2 percent,” the BSP added.
On the contrary, household consumption grew at a slower pace of 10.7 percent from 11.7 percent the previous month because of the slowdown in credit card loans and auto loans.