Outstanding loans from universal and commercial banks (U/KBs) to businesses and individual consumers expanded in August.

Preliminary data show that loans from U/KBs expanded at a slower rate of 11.2 percent year-on-year in August from 11.8 percent in July.

After adjusting for seasonal fluctuations, outstanding U/KB loans increased by 0.4 percent month-on-month in August.

Outstanding loans to residents grew by 11.6 percent in August from 12.4 percent in July. Outstanding loans to non-residents recorded a slower decline of 5.9 percent in August from an 8.1-percent decrease in the previous month.

Loans meant to fund business activities expanded by a slower pace of 9.9 percent in August from 10.8 percent in July.

Lending increased for the following key industries: real estate activities (11.0 percent); electricity, gas, steam, and air-conditioning supply (28.1 percent); wholesale and retail trade, repair of motor vehicles and motorcycles (8.1 percent); financial and insurance activities (6.9 percent); and information and communication (7.5 percent).

Consumer loans to residents?which include credit card, motor vehicle, and general-purpose salary loans?increased by 23.9 percent from 23.6 percent.

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 consistent with its price and financial stability mandates. Bangko Sentral ng Pilipinas.