Bank lending in the Philippines grew faster in December following the series of interest rate cuts by the Bangko Sentral ng Pilipinas.
Preliminary data from the BSP showed that outstanding loans of universal and commercial banks, net of reverse repurchase (RRP) placements with the BSP, grew 12.2 percent year-on-year in December.
This was faster than the 11.1-percent rise seen in November. On a month-on-month seasonally-adjusted basis, outstanding U/KB loans, net of RRPs, also went up by 1.4 percent.
Outstanding loans to residents, net of RRPs, increased by 12.4 percent 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 percent in December from 3.9 percent in November.
Loans for production activities grew 10.8 percent in December from 9.8 percent in November, on sustained increase in lending to key industries such as wholesale and retail trade, repair of motor vehicles and motorcycles (10.1 percent); electricity, gas, steam and air-conditioning supply (14.2 percent); manufacturing (7.4 percent); financial and insurance activities (7.4 percent); and construction (12.6 percent).
Consumer loans to residents went up by 25.0 percent in December from 23.3 percent 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,” the BSP said in a statement.
