Bank loans up 2.7%, money supply at P14.6 T – Manila Bulletin

Large banks’ lending activities continued to grow in September, the second consecutive month that bank lending recorded growth, said the Bangko Sentral ng Pilipinas (BSP).

The BSP said bank lending grew 2.7% year-over-year in investments net of reverse repurchase agreements (BSPs).

In August, loans rose 1.3%, ending an eight-month decline. Despite still strict credit standards, banks have started releasing more loans, encouraged by the faster rollout of COVID-19 vaccines and the easing of lockdown measures.

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“The observed increase in outstanding loans from universal and commercial banks reflects the modest recovery in global attitudes of banks on credit as well as the improvement in the economic outlook thanks to the gradual lifting of the pandemic containment measures” , the BSP said in a statement on Friday, October 10. 29.

Also in September, the BSP reported that domestic liquidity rose 8.2% year-on-year from 6.9% in August. Total liquidity amounted to 14.6 trillion pesos.

On a monthly, seasonally adjusted basis, domestic liquidity increased 1.3%. Regarding bank lending, on a monthly seasonally adjusted basis, loans from large banks, net of RRP, also increased by 0.6%.

The BSP noted a resumption of credits to production activities which resulted in a growth of 3.2% in outstanding loans to net residents of RRP, against 2% in August.

Lending to productive sectors rose 4.4 percent in September to 8.19 trillion pesos while consumer loans fell 7.8 percent to 801.39 billion pesos.

Loans to real estate activities increased by 7.2% during the period, while loans to the information and communication sector increased by 26.6%. Banks also released more loans for financial and insurance activities, which rose 6%, and 4.4% for manufacturing loans.

The BSP said it would maintain “a firm hand on the BSP’s monetary policy levers (to) continue to help boost domestic demand and market confidence.”

In September, as part of the domestic liquidity watch, the BSP noted that domestic claims grew 7.6% year-on-year from 6.7% in August due to the increase in net claims on the central administration as well as the continuous improvement of banks lending to the private sector.

Net claims on the central government increased 24.3 percent from 23.4 percent previously due to sustained government borrowing. Claims on the private sector, drawn by bank loans to private non-financial corporations, rose 3.1 percent in September from 2.4 percent in August, BSP said.


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