Preliminary data show that outstanding loans of universal and commercial banks (U/KBs), net of reverse repurchase (RRP) placements with the Bangko Sentral ng Pilipinas (BSP), grew by 13.9 percent year-on-year in October from a 13.4-percent rise in September. On a month-on-month seasonally-adjusted basis, outstanding universal and commercial bank loans, net of RRPs, went up by 1.1 percent.
Outstanding loans to residents, net of RRPs, also increased by 13.4 percent in October after growing by 13.1 percent in the previous month.
Outstanding loans for production activities rose by 12.5 percent in October, from 12.3-percent expansion in September, driven largely by the growth in loans to key industries such as real estate activities (14.0 percent); manufacturing (17.7 percent); wholesale and retail trade, repair of motor vehicles and motorcycles (11.5 percent); financial and insurance activities (12.8 percent); information and communication (25.0 percent); and electricity, gas, steam, and airconditioning supply (10.9 percent).
Similarly, consumer loans to residents increased by 22.6 percent in October from 20.6 percent (revised) in the previous month, due mainly to the year-on-year increase in credit card loans, motor vehicle loans, and salary-based general purpose consumption loans.
Outstanding loans to non-residents[1] grew by 33.0 percent in October from 26.6-percent expansion in September.
The sustained growth in credit activity and ample liquidity will continue to support the recovery of economic activity and domestic demand.
Looking ahead, the BSP will continue to take all necessary action to ensure that liquidity and bank lending conditions remain consistent with promoting price and financial stability.
[1] Outstanding loans to non-residents include loans by UKB’s foreign currency deposit units (FCDUs) to non-residents
