Outstanding loans of commercial banks, net of reverse repurchase (RRP) placements with the BSP, grew by 18.1 in February from 17.9 percent in January 2017. Likewise, bank lending inclusive of RRPs expanded by 17.5 percent in February from 16.2 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 1.5 percent and 1.8 percent, respectively.
Loans for production activities—which comprised about 89.1 percent of banks’ aggregate loan portfolio, net of RRP — grew by 17.6 percent in February from by 17.5 percent in January. The growth in production loans was driven primarily by increased lending to the following sectors: real estate activities (17.1 percent); financial and insurance activities (28.4 percent); wholesale and retail trade, repair of motor vehicles and motorcycles (13.9 percent); manufacturing (11.0 percent); electricity, gas, steam and airconditioning supply (14.2 percent); and information and communication (40.0 percent). Bank lending to other sectors also increased during the month except in the case of public administration and defense, compulsory social security (-7.0 percent).
Loans for household consumption increased by 24.6 percent in February from 23.7 percent in January due to the expansion in credit card loans and auto loans as well as sustained growth in salary-based general-purpose loans, offsetting 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 proceeds in line with overall economic growth while remaining consistent with the BSP’s price and financial stability objectives.