12.29.2014 Outstanding loans of commercial banks, net of reverse repurchase (RRP) placements with the BSP, grew by 20.0 percent in November. In the previous month, loans grew by 21.1 percent. Bank lending inclusive of RRPs expanded by 18.9 percent in November compared to the 20.0 percent growth posted in the previous month. On a month-on-month seasonally-adjusted basis, commercial bank lending increased by 0.9 percent for loans net of RRPs and by 0.5 percent for loans inclusive of RRPs.
Loans for production activities—which comprised about four-fifths of banks’ aggregate loan portfolio—expanded by 18.6 percent in November from 19.7 percent in October. The rise in production loans was driven primarily by increased lending to the following sectors: real estate, renting, and business services (16.0 percent); wholesale and retail trade (19.2 percent); manufacturing (16.4 percent); financial intermediation (25.5 percent); electricity, gas and water (18.1 percent); and, transportation, storage and communication (18.6 percent). Bank lending to other sectors also rose during the month except for public administration and defense, which declined by 0.9 percent.
Loans for household consumption grew further by 20.7 percent in November from 17.3 percent in October due to the continued expansion of lending across all types of consumer loans (i.e., credit card loans, auto loans and other types of personal loans).
The continued expansion in bank lending is expected to support the growth of the domestic economy. Going forward, the BSP will ensure that credit and liquidity conditions keep pace with overall economic growth while remaining consistent with the BSP’s price and financial stability objectives.
View Tables: 1994 PSIC | 2009 PSIC
| 
