Outstanding loans of commercial banks, thrift banks, and rural banks (net of reverse repurchase or RRPs) grew by 6.9 percent year-on-year in November. This was higher compared to the 4.4 percent growth registered in the same month a year ago and broadly similar to the 7.1 percent expansion posted last month. On a month-on-month basis, seasonally-adjusted lending declined slightly by 0.6 percent from the 3.1 percent growth in the previous month.
Gross of RRP placements with the BSP, bank lending growth accelerated by 7.1 percent year-on-year in November from 3.2 percent in October, as banks’ placements with the BSP’s reverse repurchase (RRP) facility rose.
Lending to all sectors of the economy continued to grow except for agriculture, fisheries, and forestry (AFF) and manufacturing. The utilities (electricity, gas and water) sector led the expansion in lending, posting a robust growth of 32.9 percent from 6.2 percent in the previous month. This was followed by the transportation, storage, and communication sector at 30.8 percent; wholesale and retail trade at 10.1 percent; and mining and quarrying at 7.0 percent. Meanwhile, lending to the financial institutions, real estate and business services (net of RRPs); construction; and community, social, and personal services sectors posted positive but decelerating growth rates compared to the levels in the previous month.
Mindful that credit is an important driver of economic activity, the BSP continues to closely monitor bank lending developments to ensure that the level of credit meets the growth requirements of the economy.