Bank lending in the Philippines continued its upward trend, growing by 12.2% in February, according to preliminary data from the Bangko Sentral ng Pilipinas (BSP). This was slightly lower than the 12.8% growth recorded in January.
Outstanding loans issued by universal and commercial banks (U/KBs) reached PHP13.02 trillion, up from PHP13.01 trillion in January and PHP11.61 trillion in February last year. Loans to residents, excluding reserve requirements, increased by 12.6%, while loans to non-residents declined by 3.2%.
Loans for production activities rose by 11.2%, mainly driven by higher lending to key sectors such as electricity, gas, and air-conditioning supply (21.5%), wholesale and retail trade (13.7%), construction (12.7%), manufacturing (0.9%), and transportation and storage (20.6%). Consumer loans to residents also surged by 24.1%, fueled by higher credit card and motor vehicle loans.
Meanwhile, domestic liquidity (M3) expanded by 6.3% to PHP18 trillion in February, slightly slower than January’s 6.8% growth. Domestic claims increased by 10.1%, with private sector claims rising by 12.3% due to continued bank lending to corporations and households.
Net claims on the central government slowed to 5.9% from 7.4%, reflecting lower deposits of the National Government with the BSP. Net foreign assets in peso terms grew by 5.8%, with the BSP’s holdings increasing by 8.9%, driven by higher gross international reserves. However, banks’ foreign assets declined due to higher foreign currency-denominated bills and bonds payable.
“The BSP will continue to ensure that domestic liquidity conditions remain consistent with the prevailing stance of monetary policy, in line with its price and financial stability objectives,” the central bank said.