MANILA – Bank lending of universal and commercial banks (U/KBs) grew at a faster rate in January this year while domestic liquidity growth slowed.
Data released by the Bangko Sentral ng Pilipinas (BSP) on Friday showed that banks' outstanding loans, excluding those placed in the central bank’s reverse repurchase facility, expanded by 7.8 percent, up from the 7.1 percent increase in December 2023.
Oustanding loans issued by U/KBs amounted to PHP11.5 trillion from PHP10.70 trillion in the same month last year.
The BSP said outstanding loans to residents, net of RRPs, went up by 7.8 percent in January, while outstanding loans to non-residents grew by 9.8 percent.
Loans for production activities increased by 5.9 percent in January.
The central bank said the growth was mainly due to the increase in loans to major industries such as real estate activities (11.4 percent); wholesale and retail trade, and repair of motor vehicles and motorcycles (7.4 percent); electricity, gas, steam, and airconditioning supply (7.3 percent); transportation and storage (18.2 percent); and construction (13.6 percent).
Consumer loans to residents, likewise, rose by 25.2 percent driven by the sustained increase in credit card and motor vehicle loans as well as salary-based general purpose consumption loans.
"Looking ahead, the BSP will ensure that liquidity and bank lending conditions remain in line with its price and financial stability objectives," the BSP said.
Meawnhile, domestic liquidity grew by 6.0 percent year-on-year to PHP17.0 trillion in January 2024, slightly slower than the 6.2 percent expansion in December 2023.
Domestic claims expanded by 9.8 percent from 9.2 percent in the previous month.
Claims on the private sector grew by 8.8 percent, the same rate of growth in December, with the sustained expansion in bank lending to non-financial private corporations and households.
The BSP said net claims on the central government also rose by 15.9 percent from 14.3 percent due in part to the decline in the deposits of the national government with the BSP.
Net foreign assets (NFA) in peso terms rose by 4.4 percent from 4.6 percent in December.
The BSP said its NFA grew by 5.4 percent.
Meanwhile, the NFA of banks contracted on account of higher bills payable.
"Looking ahead, the BSP will continue to ensure that domestic liquidity conditions remain consistent with the prevailing stance of monetary policy, in line with the BSP’s price and financial stability objectives," it said. (PNA)
