Bank lending expands by 9.4%, year-on-year, in March 2024

Preliminary data indicated that outstanding loans of universal and commercial banks (U/KBs), net of reverse repurchase (RRP) placements with the BSP, grew by 9.4 percent year-on-year in March from 8.6 percent in February.

On a month-on-month seasonally-adjusted basis, outstanding universal and commercial bank loans, net of RRPs, went up by 1.3 percent.

Meanwhile, outstanding loans to residents, net of RRPs, increased by 9.5 percent in March from 8.7 percent in the previous month, while outstanding loans to non-residents* went up by 9.1 percent in March after expanding by 6.5 percent in the previous month.

Outstanding loans for production activities increased by 7.7 percent in March from 6.8 percent in February, mainly due to the rise in loans to major sectors particularly real estate activities (11.5 percent); electricity, gas, steam, and airconditioning supply (10.1 percent); wholesale and retail trade, and repair of motor vehicles and motorcycles (6.6 percent); construction (18.3 percent); manufacturing (4.9 percent); and transportation and storage (14.3 percent).

Similarly, consumer loans to residents went up by 25.4 percent in March from a growth rate of 25.2 percent in February, driven by the increase in credit card, motor vehicle, and salary-based general purpose consumption loans.

Looking ahead, the BSP will ensure that domestic liquidity and credit conditions remain in line with its price and financial stability objectives.

*Outstanding loans to non-residents include loans by UKB’s foreign currency deposit units (FCDUs) to non-residents.

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