MIXED. Growth of lending activities by universal and commercial banks (U/KBs) posts a higher annual growth of 13.4 percent in September 2022 from month-ago's 12.2 percent. However, domestic liquidity growth slowed to 5 percent from 6.7 percent in the previous month. (Logo from BSP)
MANILA — Bank lending of universal and commercial banks (U/KBs) posted higher expansion but domestic liquidity grew at a slower rate in September 2022.
Data released by the Bangko Sentral ng Pilipinas (BSP) on Monday showed that U/KBs’ outstanding loans, excluding those placed in the central bank’s reverse repurchase (RRP) facility, posted higher annual expansion last month at 13.4 percent from 12.2 percent in August.
On a month-on-month basis, the BSP said bank lending grew by 1.7 percent.
Funds, net of RRPs, extended by U/KBs’ to residents during that month increased by 13 percent from month-ago’s 12.1.
Production loans during the said period went up by 12.3 percent from the previous month’s 11.5 percent expansion.
This was attributed to expansion in lending to information and communication, 25.5 percent; real estate activities, 16.3 percent; manufacturing, 16.2 percent; and wholesale and retail trade, repair of motor vehicles and motorcycles, 10.8 percent.
Consumer loans to residents during the same month also posted higher growth of 20.5 percent from month-ago’s 18.3 percent due mainly to credit card loans, motor vehicle loans, and salary-based general purpose consumption loans.
Bank lending to non-residents jumped by 26.6 percent last month, faster than its 16.3 percent print last August.
The BSP said “continued expansion in lending activity and ample liquidity will support the recovery of economic activity and domestic demand.”
“Looking ahead, the BSP will ensure that liquidity and lending conditions remain consistent with its price and financial stability mandates,” it added.
Meanwhile, the annual growth of domestic liquidity (M3) in the ninth month this year slowed to 5 percent to PHP15.4 trillion from the revised 6.7 percent rise last August.
On a month-on-month basis, M3 declined by 0.2 percent, the BSP said.
The central bank said domestic claims slowed to 10.8 percent last September from month-ago’s revised 11.4 percent growth “due to the improvement in bank lending to the private sector.”
It said claims on the private sector rose by 10.1 percent last September from the previous month’s 8.9 percent “with the sustained expansion in bank lending to non-financial private corporations and households.”
On the other hand, net claims on the national government rose by 15.3 percent, down from last August’s 21.2 percent, “owing to the sustained borrowing by the national government.”
During the same period, net foreign assets (NFA) in peso terms slipped by 1.7 percent, higher than the 0.8 percent decline last August.
The BSP said NFA of banks slipped “mainly on account of higher bills payable” while that of the central bank “was broadly steady year-on-year.”
“Looking ahead, the BSP will continue to ensure that domestic liquidity conditions remain in line with the BSP’s price and financial stability objectives,” it said. (PNA)
