Bank lending grows 9.4%, year-on-year, in May
Preliminary data indicated that outstanding loans of universal and commercial banks (U/KBs), net of reverse repurchase (RRP) placements with the BSP, expanded by 9.4 percent year-on-year in May from 9.7 percent in April, the BSP said Friday.
On a month-on-month seasonally-adjusted basis, outstanding universal and commercial bank loans, net of RRPs, increased by 0.7 percent.
Outstanding loans to residents, net of RRPs, went up by 9.3 percent in May from 9.6 percent in April.
Similarly, outstanding loans for production activities rose by 7.9 percent in May after growing by 8.3 percent in the previous month, mainly due to the continued increase in loans to major industries, specifically electricity, gas, steam, and airconditioning supply (14.1 percent); real estate activities (5.5 percent); wholesale and retail trade, and repair of motor vehicles and motorcycles (8.6 percent); information and communication (15.9 percent); and financial and insurance activities (7.3 percent).
Consumer loans to residents grew at a slightly faster rate of 22.7 percent in May from 22.3 percent in April due to the increase in credit card, motor vehicle, and salary loans. Outstanding loans to non-residents also went up by 13.2 percent in May from 12.2 percent in the previous month.
The moderation in bank lending activity reflects the impact of the BSP's cumulative policy rate adjustments. Looking ahead, the BSP will continue to ensure that domestic liquidity and credit dynamics are in line with its price and financial stability mandates. BSP
