Outstanding loans of commercial banks, net of reverse repurchase (RRP) placements with the BSP, grew faster by 17.7 percent in July from 17.6 percent in June. Meanwhile, bank lending inclusive of RRPs grew by 16.0 percent in July following a 16.1-percent growth (revised) in the previous month. On a month-on-month seasonally-adjusted basis, commercial bank lending for loans net of RRPs and loans inclusive of RRPs increased by 1.2 percent and 1.1 percent, respectively.
Loans for production activities—which comprised more than 80.0 percent of banks’ aggregate loan portfolio— increased by 17.4 percent in July from 17.7 percent in June. 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 (26.4 percent); wholesale and retail trade, repair of motor vehicles and motorcycles (14.1 percent); financial and insurance activities (20.7 percent); manufacturing (10.0 percent); and information and communication (35.4 percent). Bank lending to other sectors likewise expanded during the month, except for public administration and defense, compulsory social security which declined by 5.4 percent.
Loans for household consumption rose by 20.6 percent in July from 18.7 percent (revised) in June due to the expansion in credit card loans, motor vehicle 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.