HOME  ABOUT THE BANK  MONETARY POLICY  BANKING SUPERVISION  PAYMENTS & SETTLEMENTS  STATISTICS  FEEDBACK CORNER
   BSP NOTES & COINS  MONETARY OPERATIONS  LOANS-CREDIT & ASSET MGT  PUBLICATIONS & RESEARCH  REGULATIONS  PROCUREMENT

Feedback Corner

Publications and Research

Media Releases

Bank Lending Sustains Growth in May

06.29.2018

Preliminary data show that outstanding loans of commercial banks, net of reverse repurchase (RRP) placements with the BSP, grew at a slightly lower rate of 19.4 percent in May from 19.9 percent in April. Likewise, the growth in bank lending inclusive of RRPs slowed down to 17.7 percent in May from 19.9 percent in the previous month. On a month-on-month seasonally-adjusted basis, commercial bank loans net of RRPs and loans inclusive of RRPs both increased by 1.2 percent.

Loans for production activities—which comprised 88.5 percent of banks’ aggregate loan portfolio, net of RRP — grew by 19.3 percent in May from 19.6 percent in the previous month. The growth in production loans was driven primarily by increased lending to the following sectors: wholesale and retail trade, repair of motor vehicles and motorcycles  (23.4 percent); real estate activities (15.7 percent); financial and insurance activities  (31.3 percent); manufacturing (17.7 percent); and, electricity, gas, steam and airconditioning supply (11.6 percent). Bank lending to other sectors also increased during the month except in agriculture, forestry and fishing (-8.3 percent), and administrative and support services activities (-49.2 percent).

Meanwhile, the growth of loans for household consumption slowed down to 18.4 percent in May from 19.0 percent in April. The slower increase in motor vehicle loans and salary-based general purpose consumption loans as well as the contraction in other types of household loans offset the faster expansion in credit card loans in May.

The BSP will continue to ensure that the expansion in domestic credit and liquidity proceeds in line with overall economic growth while remaining consistent with the BSP’s price and financial stability objectives.

View Table

RSS Subscribe for updates

Archives