Outstanding loans of commercial banks, net of reverse repurchase (RRP) placements with the BSP, grew by 17.3 percent in August from 17.7 percent in July. Likewise, bank lending inclusive of RRPs increased by 15.9 percent from 16.0 percent 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 1.3 percent, respectively.
Loans for production activities—which comprised more than 80.0 percent of banks’ aggregate loan portfolio— grew by 17.3 percent in August from 17.4 percent in July. The expansion in production loans was driven primarily by increased lending to the following sectors: real estate activities (19.5 percent); electricity, gas, steam and airconditioning supply (30.9 percent); wholesale and retail trade, repair of motor vehicles and motorcycles (15.9 percent); financial and insurance activities (15.3 percent); information and communication (43.2 percent); and, manufacturing (7.7 percent). Bank lending to other sectors likewise expanded during the month, except for mining and quarrying (-1.0 percent); water supply, sewerage, waste management and remediation activities (-0.6 percent); and, public administration and defense, compulsory social security (-5.0 percent).
Loans for household consumption rose by 20.3 percent in August from 20.6 percent in July due to the sustained growth in salary-based general-purpose loans, credit card loans, and motor vehicle 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.