Outstanding loans of commercial banks, net of reverse repurchase (RRP) placements with the BSP, grew by 13.1 percent in December from 13.9 percent (revised) in November. Similarly, bank lending inclusive of RRPs increased by 12.2 percent in December from 13.5 percent in the previous month. On a month-on-month seasonally-adjusted basis, commercial bank lending increased by 1.2 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 13.3 percent in December from 14.4 percent (revised) in November. The expansion in production loans was driven primarily by increased lending to the following sectors: real estate activities (18.8 percent); electricity, gas, steam and airconditioning supply (27.2 percent); wholesale and retail trade, repair of motor vehicles and motorcycles (12.2 percent); financial and insurance activities (11.8 percent); and information and communication (26.1 percent). Bank lending to other sectors likewise expanded during the month except for administrative and support services activities, and other community, social and personal activities, which declined by 5.5 percent and 4.7 percent, respectively.
Loans for household consumption expanded by 14.2 percent in December from 13.3 percent in November due to the increase of credit card loans as well as sustained expansion in motor vehicle loans, and salary-based general purpose loans. and 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.