The growth of outstanding loans of commercial banks, net of banks’ reverse repurchase (RRP) placements with the BSP, rose slightly in November to 22.5 percent from the previous month’s expansion of 22.2 percent. Meanwhile, the growth of bank lending inclusive of RRPs fell to 19.3 percent from 21.1 percent in October. Commercial banks’ loans have been growing steadily at double-digit rates since January 2011. On a month-on-month seasonally-adjusted basis, commercial banks’ lending in November grew by 2.0 percent for loans net of RRPs, while loans inclusive of RRPs increased by 0.2 percent.
Loans for production activities—which comprised more than four-fifths of banks’ total loan portfolio—grew by 23.4 percent in November from 23.1 percent a month earlier. On the other hand, the growth of consumer loans decelerated to 18.1 percent in November from 20.2 percent in October, mainly reflecting the slower growth in credit card lending.
The expansion of production loans was driven primarily by higher lending to wholesale and retail trade (by 46.6 percent); real estate, renting and business services (28.4 percent); electricity, gas and water (57.3 percent); manufacturing (24.9 percent); financial intermediation (33.7 percent); transportation, storage and communication (26.9 percent); and construction (26.0 percent). With robust global demand driving world mineral prices and spurring domestic mining output, loans to the mining and quarrying industry in November sustained the three-digit growth rate registered since May 2011. Meanwhile, declines were observed in lending to three sectors, namely: health and social work (-10.5 percent), education (-12.0 percent), and agriculture, hunting and forestry (-15.0 percent).
Robust credit expansion should help support the domestic economy in the midst of subdued global growth prospects. Looking ahead, the BSP will continue to monitor economic developments to ensure that monetary policy settings remain supportive of domestic economic activity consistent with the price stability objective.
View Table 1