Outstanding loans of commercial banks, net of reverse repurchase (RRP) placements with the BSP, grew at a slightly slower pace of 14.5 percent in May from 15.4 percent in the previous month. Likewise, the growth of bank lending inclusive of RRPs slowed down to 14.3 percent from the 14.8 percent growth posted in the previous month. On a month-on-month seasonally-adjusted basis, commercial bank lending increased by 0.8 percent for loans net of RRPs and by 0.7 percent for loans inclusive of RRPs.
Loans for production activities—which comprised more than 80.0 percent of banks’ aggregate loan portfolio—grew by 14.1 percent in May from 15.1 percent in April. The expansion in production loans was driven primarily by increased lending to the following sectors: real estate, renting, and business services (12.9 percent); manufacturing (12.9 percent); wholesale and retail trade (12.9 percent); electricity, gas and water (12.9 percent); and, financial intermediation (15.1 percent). Bank lending to other sectors likewise expanded during the month.
Loans for household consumption grew by 20.5 percent in May from 20.1 percent in April due to continued growth in credit card loans, auto loans and other types of loans (i.e., salary loans and personal 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.
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