Preliminary data show that outstanding loans of universal and commercial banks (U/KBs), net of reverse repurchase (RRP) placements with the BSP, grew by 10.0 percent year-on-year in February 2023 from 10.4 percent in the previous month.
On a month-on-month seasonally-adjusted basis, outstanding universal and commercial bank loans, net of RRPs, eased slightly by 0.2 percent.
Outstanding loans to residents, net of RRPs, increased by 9.9 percent in February, slower than the the 10.2-percent rise in January.
Outstanding loans for production activities expanded by 8.7 percent in February from 9.2 percent in January, driven by the growth in credit to key sectors, particularly financial and insurance activities (12.5 percent); wholesale and retail trade, repair of motor vehicles and motorcycles (9.2 percent); electricity, gas, steam, and airconditioning supply (9.3 percent); information and communication (18.6 percent); manufacturing (8.3 percent); and real estate activities (3.8 percent).
Meanwhile, consumer loans to residents rose by 21.2 percent in February from 20.3 percent in the previous month with the sustained growth in credit card and salary-based general purpose consumption loans.
Outstanding loans to non-residents rose by 14.8 percent in February following a 16.8-percent growth rate in the previous month.
Sustained credit and ample liquidity will continue to support robust domestic demand. Even as the Philippine banking system remains sound, the BSP will keep a watchful eye over evolving market conditions to ensure that credit and liquidity dynamics continue to be in line with its price and financial stability mandates.
 Outstanding loans to non-residents include loans by UKB’s foreign currency deposit units (FCDUs) to non-residents.