Outstanding loans of commercial banks, net of reverse repurchase (RRP) placements with the BSP, expanded by 15.6 percent in April from 14.8 percent in March. Similarly, bank lending inclusive of RRPs grew by 14.8 percent in April from 13.5 percent in the previous month. On a month-on-month seasonally-adjusted basis, commercial bank lending increased by 1.5 percent for loans net of RRPs and by 1.7 percent for loans inclusive of RRPs.
Loans for production activities—which comprised more than 80.0 percent of banks’ aggregate loan portfolio— increased by 15.6 percent in April from 15.0 percent in March. The expansion in production loans was driven primarily by increased lending to the following sectors: real estate activities (20.5 percent); electricity, gas, steam and airconditioning supply (30.6 percent); wholesale and retail trade, repair of motor vehicles and motorcycles (15.5 percent); financial and insurance activities (18.5 percent); and information and communication (31.2 percent). Bank lending to other sectors likewise expanded during the month, except for professional, scientific and technical activities (-0.5 percent); water supply, sewerage, waste management and remediation activities (-1.3 percent); and public administration and defense, compulsory social security (-7.3 percent).
Loans for household consumption expanded by 16.8 percent in April from 15.9 percent in March due to expansion in motor vehicle loans and sustained growth in credit card loans and salary-based general purpose loans, which offset the decline in other types of household 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.