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By Chino S. Leyco, Reporter
THE Bangko Sentral ng Pilipinas’ (BSP) series of cuts in its
overnight rates failed to boost bank lending, with the latest growth
figure still in the single-digit territory.
In a statement, the BSP said outstanding loans
of commercial, thrift and rural banks, net of overnight transactions
between lenders, grew 9.3 percent year on year in January, up from
the 5.8-percent up tick a year ago, and the 7.9 percent rise in
December.
Seasonally-adjusted lending was broadly stable
month-on-month, registering a 1.6-percent growth in January, the
central bank said.
Manufacturers, traditionally big users of bank
loans, stayed away from their lenders that month, with their
combined borrowings dipping 5 percent year on year. The sector’s
outstanding loans comprised a fifth of the total amount lent out.
The mining, construction, and agriculture
sectors also limited their borrowings, with lending to these
industries down 2.3 percent, 0.3 percent, and 2.5 percent,
respectively.
Sectors that took out more loans were the
financial institutions, real estate and business services;
electricity, gas and water; and community, social and personal
services. Lending to the financial services sector accounted for 30
percent of the total outstanding, while loans extended to the
community services sector comprised over a tenth of the total.
Also contributing to lending growth in the first
month of the year were the transportation, storage, and
communication sector, and the wholesale and retail trade industry.
The trade sector is also one of the biggest users of bank lending
with nearly a fifth of the total outstanding.
Until last Thursday, the BSP had been cutting
its overnight rates, reaching a low of 5 percent and 7 percent for
the borrowing and lending windows, respectively. The policy rate
reduction was in step with its US counterpart’s series of cuts in
its Federal funds rate.
The US Fed is widely believed to slash its funds
rate last night to provide a soft landing for a slowing economy.
The BSP’s monetary easing meanwhile was aimed
at maintaining the differential between Philippine and US interest
rates, as allowing this to widen would cause foreign exchange
inflows to surge and stoke higher inflation.
Despite the single-digit growth of bank lending,
the BSP expects its recent easing to boost credit expansion in the
months ahead in tandem with the expected growth of economic
activity.
With volatile financial markets worldwide,
pundits expect more firms to tap bank loans for their funding
requirements. At the Philippine Stock Exchange, a number of firms
that had scheduled to sell their stocks to the public pushed back
their plans amid the volatility.
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