Manila—(PHStocks)—Growth of outstanding loans of commercial banks, net of reverse repurchase (RRP) placements with the Bangko Sentral ng Pilipinas (BSP), slowed down to 12.5% in September from 14.1% in August.
Meanwhile, bank lending inclusive of RRPs grew by 14.1% in September from 14.3% in the previous month. On a month-on-month seasonally-adjusted basis, commercial bank lending increased by 0.5% for loans net of RRPs and by 1.8% for loans inclusive of RRPs.
Loans for production activities—which comprised more than 80% of banks’ aggregate loan portfolio—grew by 13% in September from 13.8% in August. The expansion in production loans was driven primarily by increased lending to the following sectors: real estate activities (20.3%); electricity, gas, steam and air-conditioning supply (26.8%); wholesale and retail trade, and repair of motor vehicles and motorcycles (13.7%); and financial and insurance activities (15.6%).
Bank lending to other sectors likewise expanded during the month except for transportation and storage, and manufacturing, which declined by 0.1% and 2.1%, respectively.
Loans for household consumption grew by 12% in September from 14% in August due to sustained growth in credit card loans and auto loans.
Going forward, the BSP will continue to ensure that domestic credit and liquidity conditions will keep pace with overall economic growth while remaining consistent with its price and financial stability objectives.