Oct bank lending gains pace

0

Up 21.1% despite slower M3
Bank lending in the Philippines grew at a faster pace year-on-year in October against the rate of growth in September, although money supply eased during the period, data from the Bangko Sentral ng Pilipinas (BSP) showed on Friday.

Outstanding loans granted by commercial banks, excluding reverse repurchase (RRP) placements with the central bank, rose 21.1 percent in October, gaining pace from 20.5 percent in September.

Including the RRPs, bank lending expanded by 20 percent from the 19.5 percent rise seen the previous month. On a seasonally adjusted basis, commercial bank lending rose 1.4 percent for loans net of RRPs month-on-month and by 1.2 percent for loans inclusive of RRPs.

“Continued broad-based growth in bank lending supports the view that underlying demand prospects remain favorable amid buoyant business expectations on the economy,” the BSP said.


Loans approved for production activities, which comprise more than four-fifths of banks’ aggregate loan portfolio, expanded further by 19.7 percent in October from 18.7 percent in September.

The central bank said the increase in production loans was driven by lending for manufacturing; real estate, renting, and business services; wholesale and retail trade; electricity, gas and water; and financial intermediation.

“Bank lending to other sectors also rose during the month, except for public administration and defense, which declined by 1.2 percent,” the BSP said.

Meanwhile, growth in loans for household consumption was broadly steady at 17.3 percent in October, or just slightly lower than the 17.7 percent seen the previous month.

The central bank attributed the increase to continued expansion in auto loans, salary and personal loans, which offset the slight slowdown in the rise in credit card loans.

“Going forward, the BSP will continue to pay attention to evolving credit and liquidity conditions to ensure that bank lending growth continues to reflect the pace of domestic demand consistent with its price stability objective,” the BSP added.

Share.
.
Loading...

Please follow our commenting guidelines.

Comments are closed.