Bank lending in the Philippines grew at a slightly slower pace in July, even as domestic liquidity expanded, the Bangko Sentral ng Pilipinas (BSP) reported Friday.
Outstanding loans of universal and commercial banks (U/KBs) rose 11.8 percent in July, down from 12.1 percent in June, totaling PHP13.57 trillion. Loans to residents increased by 12.4 percent, while loans to non-residents fell by 8.1 percent. Lending for business activities grew at a slower pace of 10.8 percent, though key sectors such as real estate, utilities, trade, financial services, and information and communication saw higher lending. Consumer loans—including credit cards, motor vehicle, and salary loans—rose 23.6 percent.
Meanwhile, domestic liquidity (M3), the total money in the economy, grew 6.2 percent to about PHP18.6 trillion, faster than June’s 5.9 percent. Claims on the domestic sector rose 10.5 percent, driven by lending to private and government entities, with private sector loans up 11 percent. Net claims on the central government increased by 7.1 percent, reflecting higher borrowings.
Net foreign assets (NFA) in peso terms fell 0.6 percent, due to a drop in gross international reserves, while banks’ holdings of foreign currency-denominated debt instruments rose.
Looking ahead, the BSP said it will “ensure that domestic liquidity and bank lending conditions remain aligned with its price and financial stability objectives.”