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Writer's pictureTony Chavez

Bank lending grows by 10.7%, year-on-year, in August

Preliminary data indicated that outstanding loans of universal and commercial banks (U/KBs), net of reverse repurchase (RRP) placements with the BSP, increased at a faster rate of 10.7 percent year-on-year in August, up from 10.4 percent in July. On a month-on-month seasonally adjusted basis, outstanding U/KB loans, net of RRPs, rose by 0.8 percent.


Likewise, outstanding loans to residents, net of RRPs, grew by 10.9 percent in August compared to 10.4 percent in July. Meanwhile, outstanding loans to non-residents increased at a slower rate of 1.5 percent in August, down from 9.2 percent in the previous month.


Loans for production activities increased by 9.4 percent in August, up from 8.8 percent in July. This growth was largely driven by loans to key industries such as real estate activities (13.2 percent); wholesale and retail trade, repair of motor vehicles and motorcycles (10.7 percent); manufacturing (9.8 percent); transportation and storage (23.4 percent); and electricity, gas, steam, and air conditioning supply (7.0 percent).


Consumer loans to residents increased at a slower rate of 23.7 percent in August compared to 24.3 percent in July, mainly driven by credit card lending.


Looking ahead, the BSP will continue to ensure that domestic liquidity and lending conditions remain aligned with its price and financial stability objectives.

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