Outstanding loans of commercial banks, net of reverse repurchase (RRP) placements with the BSP, expanded by 13.5 percent in July from 14.5 percent in June. Similarly, bank lending inclusive of RRPs grew by 13.4 percent from the 14.2 percent growth in the previous month. On a month-on-month seasonally-adjusted basis, commercial bank lending increased by 1.0 percent for loans net of RRPs and by 1.1 percent for loans inclusive of RRPs.
Loans for production activities—which comprised more than 80.0 percent of banks’ aggregate loan portfolio—grew by 13.4 percent in July from 14.5 percent in June. The expansion in production loans was driven primarily by increased lending to the following sectors: real estate activities (16.4 percent); electricity, gas, steam and airconditioning supply (27.8 percent); wholesale and retail trade, and repair of motor vehicles and motorcycles (15.2 percent); financial and insurance activities (10.7 percent); and manufacturing (4.5 percent). Bank lending to other sectors likewise expanded during the month except for transportation and storage, and other community, social and personal activities, which declined by 4.5 percent and 15.1 percent, respectively.
Loans for household consumption grew by 13.7 percent in July from 14.9 percent in June due to sustained growth in credit card loans, auto loans and salary 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.