Preliminary data show that outstanding loans of commercial banks, net of reverse repurchase (RRP) placements with the BSP, grew by 19.2 percent in April from 20.2 percent (revised) in March. Likewise, bank lending inclusive of RRPs expanded by 16.0 percent in April from 18.4 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 1.1 percent and 0.4 percent, respectively.
Loans for production activities—which comprised about 88.7 percent of banks’ aggregate loan portfolio, net of RRP — grew by 18.4 percent in April from 18.9 percent (revised) in March. The growth in production loans was driven primarily by increased lending to the following sectors: real estate activities (19.0 percent); manufacturing (16.5 percent); electricity, gas, steam and airconditioning supply (20.0 percent); wholesale and retail trade, repair of motor vehicles and motorcycles (12.3 percent); and information and communication (42.0 percent). Bank lending to other sectors also increased during the month.
Loans for household consumption increased by 24.3 percent in April from 24.5 percent (revised) in March due to the expansion in credit card loans and salary-based general-purpose loans as well as sustained growth in auto loans, offsetting the contraction 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.