Bank lending continued to expand in February, with preliminary data showing loans extended by universal and commercial banks rising 9.5 percent year-on-year, slightly faster than the 9.3 percent growth recorded in January.
Seasonally adjusted, outstanding loans of universal and commercial banks also increased by 0.8 percent month-on-month, indicating sustained credit activity as banks continued to fund both business operations and household spending.
Outstanding loans to residents climbed 10.1 percent in February, up from 9.9 percent in the previous month. In contrast, loans to non-residents declined by 13.2 percent, a steeper drop than the 10.4 percent contraction seen in January.
Business lending showed stronger momentum, expanding by 8.6 percent from 8.2 percent a month earlier. The increase was driven by faster credit growth in several major industries, including electricity, gas, steam, and air-conditioning supply, which surged by 23.5 percent; water supply, sewerage, waste management, and remediation activities, up 26 percent; transportation and storage, up 19.3 percent; real estate activities, up 9 percent; and wholesale and retail trade, including repair of motor vehicles and motorcycles, up 8.2 percent.
Meanwhile, consumer loans to residents continued to grow, though at a slightly slower pace of 20.8 percent from 21.3 percent in January, as credit card and motor vehicle loans posted more modest expansion.
The Bangko Sentral ng Pilipinas closely tracks bank lending as a major channel through which monetary policy reaches the broader economy. Moving forward, the central bank said it will continue to ensure that liquidity and lending conditions remain aligned with its mandates of maintaining price stability and safeguarding the financial system.
