Domestic liquidity (M3) grew 7.7% year-on-year to ₱ 18.8 trillion in December, the same pace as in the previous month. On a month-on-month seasonally adjusted basis, M3 increased marginally by 0.2%, the Bangko Sentral ng Pilipinas (BSP) said.
Domestic claims expanded by 10.4% year-on-year in December from 10.8% in November. Claims on the private sector grew by 12.2% in December from 11.7% in the previous month, with the continued expansion in bank lending to non-financial private corporations and households. Net claims on the central government expanded by 7.2% from 9.2% due to higher borrowings by the National Government.
Net foreign assets (NFA) in peso terms rose by 6.0% year-on-year in December from 9.8 percent in November. The BSP’s NFA expanded by 6.8%, reflecting the increase in gross international reserves relative to a year ago. Meanwhile, the NFA of banks declined due to higher bills and bonds payable.
The BSP will continue to ensure that domestic liquidity conditions remain consistent with monetary policy’s prevailing stance and in line with its price and financial stability objectives.
Bank lending rose 12.2%
Meanwhile, outstanding loans of universal and commercial banks (U/KBs), net of reverse repurchase (RRP) placements with the BSP, grew 12.2% year-on-year in December from 11.1% in November. On a month-on-month seasonally-adjusted basis, outstanding U/KB loans, net of RRPs, rose by 1.4%.
Outstanding loans to residents, net of RRPs, increased by 12.4% in December from an 11.4-percent growth in the previous month.
Outstanding loans to non-residents1 expanded at a faster rate of 5.7% in December from 3.9% in November.
Loans for production activities rose by 10.8% in December from 9.8% in November, due largely to the sustained increase in lending to key industries such as wholesale and retail trade, repair of motor vehicles and motorcycles (10.1%); electricity, gas, steam and air-conditioning supply (14.2%); manufacturing (7.4%); financial and insurance activities (7.4%); and construction (12.6%).
Likewise, consumer loans to residents increased by 25.0% in December from 23.3% in November due to the increase in credit card loans, salary-based general-purpose consumption loans, and motor vehicle loans.
Looking ahead, the BSP will ensure that domestic liquidity and bank lending conditions remain consistent with its price and financial stability objectives.
