Bank lending up 4%, money supply at P14.8 T – Manila Bulletin

The outstanding loans of big banks in November 2021 increased by 4% year-on-year and higher than 3.5% in October, according to data from Bangko Sentral ng Pilipinas (BSP).

Net of reverse repurchase agreements (RRPs) with the BSP, bank loans increased by 0.3% on a seasonally adjusted monthly basis.

“Outstanding universal and commercial bank loans continue to gain momentum amid an upbeat corporate economic outlook due to the easing of COVID-19 restrictions and the continued rollout of vaccines,” said the BSP on Friday, December 31.

The BSP said it “sees enough scope to continue to provide appropriate policy support to support the recovery of credit activity.”

Total RRP net lending stood at 9.35 trillion pesos in November. Gross of RRPs, loans reached P9.62 trillion to residents and non-residents.

In November, outstanding loans for production activities rose 5.3 percent year-on-year to reach 8.27 trillion pesos. This development is explained by the increase in loans to real estate activities, information and communication, financial and insurance activities, manufacturing and the transport and warehousing sector.

Consumer loans, however, fell by 7.1% in November to P813.77 billion. Only credit card loans saw an increase over the period, while auto loans and general consumer payroll loans all declined.

In a separate report, the BSP said domestic liquidity (M3) rose 8.3% year-on-year in November to 14.8 trillion pesos. On a seasonally adjusted monthly basis, M3 increased by 0.5%.

Domestic claims rose 8.1 percent year-on-year from 7.5 percent in October, driven by higher net claims on the central government as well as continued improvement in bank lending to the private sector, it said. indicated the BSP.

Net claims on central government also increased by 23.9% due to sustained government borrowing, while claims on the private sector increased by 3% with more bank loans to private non-financial corporations.

As for net foreign assets, the BSP said they rose 8.8 percent in November as its own position in NFA improved on the back of healthy gross international reserves. Banks’ NFA also increased over the period as banks’ external assets increased due to increased lending to nonresident banks, the BSP said.

The BSP said it “will ensure that domestic liquidity conditions continue to provide the necessary support for domestic economic activity amid downside risks to economic recovery, consistent with its price and financial stability objectives. “.



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