The Market Monitor Minding the Nation's Business
Bank lending grew at a slightly slower pace in July while domestic liquidity picked up, the Bangko Sentral ng Pilipinas (BSP) reported Friday.
Data showed outstanding loans of universal and commercial banks (U/KBs) expanded by 11.8 percent year-on-year, easing from 12.1 percent in June. The amount of outstanding loans stood at P13.57 trillion.
Lending to residents rose by 12.4 percent from 12.6 percent in June, while loans to non-residents contracted further by 8.1 percent, following a 6.4-percent decline the previous month.
Business loans grew by 10.8 percent from 11.1 percent, although lending for key industries such as real estate, utilities, trade, finance, and information and communication increased. Consumer loans surged 23.6 percent, driven by credit card, auto, and salary loans.
Meanwhile, domestic liquidity (M3) — the broad measure of money in circulation — grew by 6.2 percent to about P18.6 trillion in July, faster than the 5.9-percent expansion in June.
Claims on the domestic sector rose 10.5 percent, with private sector claims growing 11 percent, fueled by lending to corporations and households. Net claims on the central government increased 7.1 percent due to higher borrowings.
In peso terms, net foreign assets dipped 0.6 percent, as the BSP’s NFA dropped by 1.2 percent on lower reserves, while banks’ NFA rose from larger foreign debt holdings.
“Looking ahead, the BSP will ensure that domestic liquidity and bank lending conditions remain aligned with its price and financial stability objectives,” the central bank said.