RP bank lending continues to grow to 12.5% in August
MANILA – Impact of the continued global economic recovery is now clearly seen in the Philippines as bank lending continue its robust growth last August.
The Bangko Sentral ng Pilipinas (BSP) on Wednesday said bank lending, excluding placements in the central bank’s reverse repurchase (RRP) or overnight borrowing facility, expanded by 12.5 percent year-on-year last August from the 11.7 percent it posted same period in 2008.
Including RRPs, bank lending grew by 9.8 percent during the same period from last July’s 8.9 percent after it reached P2.3 trillion.
“On a month-on-month seasonally-adjusted basis, commercial banks’ lending increased by 0.7 percent for loans net of RRPs, and by 1.5 percent for loans inclusive of RRPs,” it said.
Specifically, production loans, which account for about 84.9 percent of bank’s total loan portfolio, went up by 12.7 percent last August from the previous month’s 12 percent.
Consumer loans also registered rosier figures after it rose by 15.4 percent from month-ago’s 12.5 percent.
BSP traced the growth of loans extended to the production sector to the higher lending to manufacturing at 21.9 percent; electricity, gas and water at 19.8 percent; financial intermediation, 16.4 percent; real estate, renting and business services, 12.4 percent; wholesale and retail trade, 11.6 percent; and agriculture, hunting and forestry, at nine percent.
It also noted that amid posting a slower growth, loans extended to the construction sector were still at double digit of 18.9 percent from the previous month’s 22 percent.
“The only sector that posted a decline in August was other community, social and personal services at -20.5 percent,” it said.
Of the total consumption loans, credit card loans registered the lowest at 8.1 percent followed by the 23.4 percent of other loans and the 31.7 percent in auto loans.
BSP said “the upturn in the credit cycle remains consistent with the robust pick-up in domestic demand and the rebound in global trade.”
“The BSP remains steadfast in its efforts to provide the appropriate credit conditions supportive of sustained domestic economic growth, while fulfilling its primary mandate of maintaining price stability,” it added. *PNA
