MANILA -- Preliminary data show that outstanding loans of commercial banks net of reverse repurchase (RRP) placements with the Bangko Sentral ng Pilipinas (BSP), grew at a slightly lower rate of 19.1 percent in June from 19.3 percent (revised) in May, the BSP said in a statement on Tuesday.
Likewise, the growth in bank lending, inclusive of RRPs, marginally slowed down to 17.6 percent in June from 17.7 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 1.3 percent and 1.5 percent, respectively.
Loans for production activities—which comprised 88.6 percent of banks' aggregate loan portfolio, net of RRP — grew by 19.2 percent in June from 19.3 percent in the previous month.
The sustained growth in production loans was driven primarily by increased lending to the following sectors: wholesale and retail trade, repair of motor vehicles and motorcycles (24.9 percent); real estate activities (16.1 percent); financial and insurance activities (31.1 percent); manufacturing (17.8 percent); electricity, gas, steam and air conditioning supply (10.3 percent); and other community, social and personal activities (95.5 percent). Bank lending to other sectors also increased during the month except in agriculture, forestry and fishing (-7.8 percent), and administrative and support services activities (-52.9 percent).
Meanwhile, the growth of loans for household consumption decelerated to 17.7 percent in June from 18.4 percent in the previous month. The expansion in credit card loans and salary-based general purpose consumption loans was moderated by the slower pace of growth in motor vehicle loans and the contraction in other types of household loans in June.
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. (BSP PR)
