BSP: Bank lending growth continued in June
Loan grants of commercial banks to businesses and households continued to grow in June, data released by the Bangko Sentral ng Pilipinas (BSP) showed on Friday.
Outstanding loans excluding reverse repurchase (RRP) placements with the BSP grew at 17.6 percent from 17.7 percent in May.
Bank lending inclusive of RRPs increased by 16.6 percent, at same level as last month.
The central bank said the loans for production activities, reflecting 80.0 percent of banks' aggregate loan portfolio, increased by 17.7 percent from 17.9 percent.
BSP noted that the expansion in production loans was driven primarily by increased lending in real estate (20.7 percent); electricity, steam, airconditioning supply (30.0 percent); wholesale and retail trade, repair of motor vehicles and motorcycles (15.3 percent); financial and insurance activities (19.4 percent); manufacturing (9.3 percent); and information and communication (35.5 percent).
"Bank lending to other sectors also increased during the month except for professional, scientific and technical activities (-7.8 percent), and public administration and defense, compulsory social security (-5.9 percent," the central bank said.
Meanwhile, loans for household consumption expanded by 18.8 percent in June from 17.4 percent in May amid expansion in motor vehicle loans and salary-based general purpose loans and sustained growth credit in credit card loans—which offset the decline in other types of household loans.
The central bank said it continues 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. — John Ted Cordero/VVP, GMA News