BANK lending grew at a slower pace of 18.7 percent in May, compared with 19.2 percent in April, marked by lower growth in lending for production activities, the central bank said on Friday.
Including reverse repurchase placements (RRPs) with the central bank, lending rose by 17.4 percent from 16 percent in the same comparable period.
Seasonally adjusted month-on-month, commercial bank lending increased by 1.7 percent for loans net of RRPs and by 3.3 percent for loans inclusive of RRPs.
Lending for production activities, which accounted for over 88.5 percent of the aggregate loan portfolio, was slower at 17.6 percent from 18.4 percent.
The BSP did not explain the slowdown, saying only that real estate activities, which increased by 17.1 percent largely contributed to growth.
“Bank lending to other sectors also increased during the month,” the central bank said.
Loans for household consumption grew by 23.6 percent compared with 24.3 percent in April.
“Going forward, the BSP will continue to ensure that domestic credit and liquidity conditions proceeds in line with overall economic growth while remaining consistent with BSP’s price and financial stability objectives,” the central bank said.
It said that monetary authorities would “continue to monitor domestic liquidity closely to ensure that monetary conditions remain conducive to maintaining price and financial stability.”