Outstanding loans from universal and commercial banks (U/KBs) rose anew in May, driven both by loans to businesses and individual consumers.

Preliminary data from the Bangko Sentral ng Pilipinas (BSP) show that loans from U/KBs grew by 11.3 percent year-on-year in May from 11.2 percent in April.

After adjusting for seasonal fluctuations, the outstanding loans increased by 0.9 percent in May compared with the previous month.

Outstanding loans to residents expanded by 11.8 percent year-on-year in May from 11.9 percent in April. Outstanding loans to non-residents declined by 6.6 percent in May, following a 10 percent decrease in the previous month.

Loans meant to fund business activities increased by 10.2 percent in May from 10.3 percent in April.

Loan growth eased slightly due to the slower expansion in lending to key industries such as: real estate activities (8.7 percent); wholesale and retail trade, and repair of motor vehicles and motorcycles (9.8 percent); and transportation and storage (14 percent). Loans to manufacturing fell (-3 percent).

Consumer loans to residents?which include car, motorcycle, credit card, and general-purpose salary loans?grew by 23.7 percent in May from 24 percent in April.

The BSP monitors bank loans because they are a key transmission channel of monetary policy. Looking ahead, the BSP will ensure that domestic liquidity and bank lending conditions remain aligned with its price and financial stability objectives. Bangko Sentral ng Pilipinas