Money supply increased 12.7 percent in April from a year ago, on sustained demand for credit, Bangko Sentral ng Pilipinas said Tuesday.
Data from Bangko Sentral showed money supply or domestic liquidity reached P8.6 trillion as of end-April.
Domestic claims grew 18.4 percent as credits to the private sector increased at a faster pace, Bangko Sentral said.
“The sustained expansion of M3 during the month indicates that money supply remains sufficient to support economic growth,” Bangko Sentral said.
Net foreign assets in peso terms grew 8 percent in April. Bangko Sentral’s net foreign assets position continued to expand on the back of robust foreign exchange inflows which were mainly overseas Filipinos remittances and business process outsourcing receipts.
The net foreign assets of banks decreased, as banks’ foreign assets expanded at a slower pace relative to that of foreign liabilities.
Meanwhile, outstanding loans, net of reverse repurchase placements with BSP, expanded 15.6 percent in April, faster than the 14.8-percent growth in March.
Loans for production activities, representing more than 80 percent of banks’ aggregate loan portfolio, increased 15.6 percent in April, up from 15 percent in March.
The expansion in production loans was driven primarily by increased lending to real estate activities, 20.5 percent; electricity, gas, steam and air-conditioning supply, 30.6 percent; wholesale and retail trade, repair of motor vehicles and motorcycles, 15.5 percent; financial and insurance activities, 18.5 percent; and information and communication, 31.2 percent.
Bank lending to other sectors also expanded during the month, except for professional, scientific and technical activities (-0.5 percent); water supply, sewerage, waste management and remediation activities (-1.3 percent); and public administration and defense, compulsory social security (-7.3 percent).
Loans for household consumption expanded 16.8 percent in April, faster than the 15.9-percent rise in March due to higher motor vehicle loans and sustained growth in credit card loans and salary-based general purpose loans.
