Total outstanding loans of commercial banks, net of banks’ reverse repurchase (RRP) placements with the BSP, continued to expand in January but at a slower pace of 15.4 percent relative to the growth of 16.2 percent in December. Meanwhile, bank lending inclusive of RRPs in the same month grew at a faster rate of 16.6 percent from 15.4 percent in the previous month, to reach P3.4 trillion. On a month-on-month seasonally-adjusted basis, commercial bank lending in January increased by 0.8 percent for loans net of RRPs while loans inclusive of RRPs rose by 1.9 percent as well.
Loans for production activities—which comprised more than four-fifths of banks’ aggregate loan portfolio—grew at a slower pace of 15.6 percent in January from 16.6 percent in December. Similarly, the growth in consumer loans eased to 12.5 percent in January from 14.1 percent in December due mainly to the slowdown of credit card receivables and other household loans.
The expansion in production loans was driven primarily by increased lending to the following sectors: real estate, renting, and business services (25.9 percent); financial intermediation (41.9 percent); transportation, storage, and communication (38.8 percent); wholesale and retail trade (12.9 percent); and manufacturing (7.6 percent). Meanwhile, declines were observed in lending to agriculture, hunting, and forestry (-13.7 percent); mining and quarrying (-44.7 percent); and in other community, social and personal services (-6.4 percent).
Sustained credit growth is expected to support the momentum of the economy. Going forward, the BSP will continue to ensure that liquidity and credit conditions will keep at pace with overall economic activity while remaining consistent with the BSP’s price stability objective.