Bank lending saw its most significant growth in nearly two years, and domestic liquidity also accelerated in November, according to the Bangko Sentral ng Pilipinas (BSP).
Preliminary data released by the BSP on Friday revealed that lending by universal and commercial banks (U/KBs) increased by 11.1 percent in November, marking the highest growth since the 13.7 percent rise recorded in December 2022.
Outstanding loans from U/KBs reached P12.67 trillion, up from P12.50 trillion in October and P11.40 trillion in November 2023.
Lending for production activities grew by 9.8 percent in November, compared to 9.1 percent in October, driven by higher lending in sectors such as wholesale and retail trade, electricity and gas supply, and financial services.
Meanwhile, consumer loans to residents surged by 23.3 percent, led by increased borrowing for credit cards and motor vehicle purchases.
In another report, the BSP noted that domestic liquidity expanded at a faster rate of 7.7 percent, reaching P18.1 trillion, compared to 5.4 percent in October.
Domestic claims grew by 10.8 percent in November, slightly up from 10 percent in October. The increase was driven by continued growth in bank lending to non-financial private corporations and households, with claims in the private sector rising by 11.7 percent.
Net claims on the central government rose by 9.2 percent, up from 8.4 percent in October, largely due to ongoing borrowings by the national government.
Net foreign assets (NFA) in peso terms grew by 9.8 percent in November, down from 11.3 percent in October. The BSP’s NFA grew by 12.8 percent, reflecting a rise in gross international reserves, while the NFA of banks contracted, largely due to increased bills and bonds payable.
The BSP assured that it would continue to align domestic liquidity and lending conditions with its mandates on price and financial stability.