Preliminary data show that outstanding loans of commercial banks, net of reverse repurchase (RRP) placements with the BSP, grew by 18.7 percent in May from 19.2 percent in April. Likewise, bank lending inclusive of RRPs expanded by 17.4 percent in May 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 1.7 percent and 3.3 percent, respectively.
Loans for production activities—which comprised about 88.5 percent of banks’ aggregate loan portfolio, net of RRP — grew by 17.6 percent in May from 18.4 percent in April. The growth in production loans was driven primarily by increased lending to the following sectors: real estate activities (17.1 percent); electricity, gas, steam and airconditioning supply (24.8 percent); manufacturing (10.9 percent); wholesale and retail trade, repair of motor vehicles and motorcycles (10.6 percent); and information and communication (36.2 percent). Bank lending to other sectors also increased during the month.
Loans for household consumption increased by 23.6 percent in May from 24.3 percent in April due to the expansion in credit card loans as well as sustained growth in auto loans and salary-based general purpose 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.