Outstanding loans of commercial banks, net of reverse repurchase (RRP) placements with the BSP, grew by 17.7 percent in October from 17.8 percent (revised) in September. Likewise, bank lending inclusive of RRPs increased by 16.2 percent from 16.5 percent (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 1.8 percent and 1.6 percent, respectively.
The growth of loans for production activities—which comprised more than 80.0 percent of banks’ aggregate loan portfolio— was steady at 17.4 percent in October relative to the previous month’s increase. The sustained growth in production loans was driven primarily by increased lending to the following sectors: real estate activities (20.0 percent); electricity, gas, steam and airconditioning supply (24.8 percent); wholesale and retail trade, repair of motor vehicles and motorcycles (12.2 percent); manufacturing (8.6 percent); and, information and communication (40.8 percent). Bank lending to other sectors likewise expanded during the month except for public administration and defense, compulsory social security, which declined by 5.8 percent.
Loans for household consumption rose by 22.2 percent in October from 22.3 percent (revised) in September due to the continued growth in motor vehicle loans and salary-based general-purpose loans as well as expansion in credit card loans, which offset the decline in other types of household loans.
Going forward, the BSP will continue to ensure that the expansion in domestic credit and liquidity conditions keeps pace with overall economic growth while remaining consistent with the BSP’s price and financial stability objectives.