Preliminary data indicated that outstanding loans of universal and commercial banks (U/KBs), net of reverse repurchase (RRP) placements with the Bangko Sentral ng Pilipinas (BSP) went up by 7.1 percent year-on-year in October, slightly faster than the 6.5-percent expansion in September.
On a month-on-month seasonally-adjusted basis, outstanding universal and commercial bank loans, net of RRPs, went up by 1.4 percent.
Outstanding loans to residents, net of RRPs, increased by 7.5 percent in October from 6.6 percent in the previous month.
Outstanding loans for production activities grew by 5.9 percent in October from 4.9 percent in September, largely driven by the growth in lending to key industries such as real estate activities (8.3 percent); electricity, gas, steam, and airconditioning supply (10.2 percent); and wholesale and retail trade, and repair of motor vehicles and motorcycles (9.3 percent).
Meanwhile, consumer loans to residents grew by 22.8 percent in October from 23.5 percent in September mainly due to the sustained growth in credit card loans and faster increase in motor vehicle loans.
Outstanding loans to non-residents[1] fell by 5.1 percent in October from an increase of 0.3 percent in September.
Looking ahead, the BSP will continue to ensure that domestic liquidity and lending conditions remain in line with its price and financial stability objectives.
[1] Outstanding loans to non-residents include loans by UKB’s foreign currency deposit units (FCDUs) to non-residents.
