Preliminary data show that outstanding loans of commercial banks, net of reverse repurchase (RRP) placements with the BSP, grew by 21.1 percent in September from 20.4 percent in August. Similarly, bank lending inclusive of RRPs increased by 20.1 percent from 17.9 percent in the previous month. On a month-on-month seasonally-adjusted basis, commercial bank lending for loans net of RRPs and loans inclusive of RRPs increased by 1.8 percent and 2.9 percent, respectively.
Loans for production activities—which comprised 88.8 percent of banks’ aggregate loan portfolio, net of RRP — grew by 20.7 percent in September from 19.5 percent in August. The growth in production loans was driven primarily by increased lending to the following sectors: real estate activities (16.8 percent); electricity, gas, steam and airconditioning supply (24.1 percent); wholesale and retail trade, repair of motor vehicles and motorcycles (16.7 percent); financial and insurance activities (20.4 percent); other community, social and personal activities (174.9 percent); manufacturing (10.3 percent); and, information and communication (38.8 percent). Bank lending to other sectors also increased during the month except in public administration, defense and compulsory social security, which declined by 0.8 percent.
Growth in loans for household consumption slowed down to 20.0 percent in September from 22.8 percent in August. The expansion in credit card loans was tempered by the slower growth in motor vehicle loans, salary-based general purpose loans and other types of household loans.
Going forward, the BSP will continue to ensure that the expansion in domestic credit and liquidity conditions proceeds in line with overall economic growth while remaining consistent with the BSP’s price and financial stability objectives.
