Outstanding loans of commercial banks, net of reverse repurchase (RRP) placements with the BSP, grew by 17.7 percent in September from 17.3 percent in August. Likewise, bank lending inclusive of RRPs increased by 16.4 percent from 15.9 percent in the previous month. On a month-on-month seasonally-adjusted basis, commercial bank lending for loans net of RRPs and loans inclusive of RRPs increased by 0.9 percent and 0.8 percent, respectively. Loans for production activities-which comprised more than 80.0 percent of banks' aggregate loan portfolio- in September grew by the same rate of 17.3 percent as in the previous month. The sustained growth in production loans was driven primarily by increased lending to the following sectors: real estate activities (19.2 percent); electricity, gas, steam and airconditioning supply (27.5 percent); wholesale and retail trade, repair of motor vehicles and motorcycles (13.2 percent); manufacturing (12.5 percent); and, information and communication (37.2 percent). Bank lending to other sectors likewise expanded during the month, except for mining and quarrying (-3.5 percent); and, public administration and defense, compulsory social security (-5.9 percent). Loans for household consumption rose by 21.7 percent in September from 20.3 percent in August due to the sustained growth in salary-based general-purpose loans, and motor vehicle loans as well as expansion in credit card loans, which offset the decline in other types of household loans. Going forward, the BSP will continue to ensure that domestic credit and liquidity conditions will keep pace with overall economic growth while remaining consistent with its price and financial stability objectives.
Source: Philippine Information Agency