Outstanding loans of commercial banks, net of reverse repurchase (RRP) placements with the BSP, grew by 13.6 percent in November from 13.9 percent in October. Similarly, bank lending inclusive of RRPs increased by 13.2 percent in November from 13.6 percent 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 0.7 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 November from 14.4 percent in October. The expansion in production loans was driven primarily by increased lending to the following sectors: real estate activities (21.8 percent); electricity, gas, steam and airconditioning supply (27.8 percent); wholesale and retail trade, repair of motor vehicles and motorcycles (13.9 percent); financial and insurance activities (15.2 percent); and construction (29.7 percent). Bank lending to other sectors likewise expanded during the month except for professional, scientific and technical activities, which declined by 27.5 percent.
Loans for household consumption expanded by 13.3 percent in November from 12.8 percent in October due primarily to the increase of credit card loans, auto loans and salary-based general purpose consumption loans, which offset the contraction in other types of 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.