Preliminary data show that outstanding loans of commercial banks, net of reverse repurchase (RRP) placements with the BSP, grew by 19.7 percent in July from 19.0 percent in June. Likewise, bank lending inclusive of RRPs expanded by 18.7 percent in July from 18.3 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 1.4 percent, respectively.
Loans for production activities—which comprised 88.4 percent of banks’ aggregate loan portfolio, net of RRP — grew by 18.9 percent in July from 17.9 percent in June. The growth in production loans was driven primarily by increased lending to the following sectors: information and communication (38.7 percent); electricity, gas, steam and airconditioning supply (27.1 percent); real estate activities (18.9 percent); wholesale and retail trade, repair of motor vehicles and motorcycles (15.1 percent); and, manufacturing (12.3 percent). Bank lending to other sectors also increased during the month.
Loans for household consumption increased by 22.3 percent in July from 22.5 percent in June due to the expansion in auto loans, credit card loans and salary-based general purpose loans as well as sustained growth 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.