Bank lending continues to expand

The banking industry is robust, and retail investors, businesses and individual consumers are availing themselves with affordable loans from the banks.

This bodes well for a growing economy, even if saddled with various political woes.

The Bangko Sentral ng Pilipinas (BSP) has released its preliminary data showing bank lending continued to expand in October, driven by steady credit demand from both businesses and consumers.

Outstanding loans from universal and commercial banks grew by 10.3 percent year-on-year—slightly slower than the 10.5 percent recorded in September. Stripping out seasonal factors, bank lending still inched up by 0.6 percent month-on-month, underscoring stable credit activity despite tighter financial conditions.

Credit to resident borrowers held firm at 10.9 percent, while loans to non-residents saw a sharper contraction at 11.1 percent, widening from September’s 2.9 percent drop.

Lending to businesses expanded by 9.1 percent, supported by higher credit demand across major industries. Real estate loans grew 9.9 percent, while lending for utilities—electricity, gas, steam, and air-conditioning—surged 24.8 percent. Other sectors also saw solid growth, including wholesale and retail trade (11.7 percent), financial and insurance activities (8.5 percent), information and communications (8.2 percent), and transportation and storage (13.0 percent).

Consumer lending also remained robust, rising 23.1 percent—only slightly slower than the previous month’s 23.5 percent. This segment covers credit card borrowing, auto loans, and salary-based multipurpose loans, all of which continue to fuel retail spending momentum.

The BSP emphasized that monitoring bank lending remains crucial as it forms a core channel through which monetary policy influe