Preliminary data show that outstanding loans of commercial banks, net of reverse repurchase (RRP) placements with the BSP, grew at a lower rate at 17.4 percent in September from 18.9 percent in August. Likewise, the growth in bank lending inclusive of RRPs decelerated to 16.3 percent in September from 18.4 percent in the previous month. On a month-on-month seasonally-adjusted basis, commercial bank loans net of RRPs and loans inclusive of RRPs increased by 0.9 percent and 1.2 percent, respectively.
Loans for production activities—which comprised 88.7 percent of banks’ aggregate loan portfolio, net of RRP — increased at a slower pace at 17.2 percent in September from 19.1 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 (22.5 percent); real estate activities (15.8 percent); manufacturing (20.6 percent); financial and insurance activities (31.4 percent); electricity, gas, steam and airconditioning supply (10.6 percent); and, construction (36.4 percent). Bank lending to other sectors also increased during the month except in professional, scientific and technical activities (-11.0 percent); other community, social and personal activities (-12.0 percent); and, administrative and support services activities (-54.6 percent).
Meanwhile, loans for household consumption grew by 17.9 percent in September from 15.8 percent in the previous month. The faster expansion in motor vehicle loans as well as the growth in credit card loans and salary-based general purpose consumption loans offset the decline in other types of household loans during the month.
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.