Bank loans rose as money supply reached P17 trillion in February, indicating strong demand amid sustained economic growth.
Preliminary data from the Bangko Sentral ng Pilipinas showed that outstanding loans of universal and commercial banks, net of reverse repurchase (RRP) placements with the BSP, went up at a faster rate of 7.8 percent year-on-year in January compared to 7.1 percent in December 2023.
The BSP said that on a month-on-month seasonally-adjusted basis, outstanding universal and commercial bank loans, net of RRPs, rose 0.8 percent.
Meanwhile, outstanding loans to residents, net of RRPs, went up by 7.8 percent in January from 7.4 percent (revised) in the previous month, while outstanding loans to non-residents grew by 9.8 percent in January after declining by 2.9 percent in December.
Outstanding loans for production activities increased 5.9 percent in January from 5.6 percent in December, led by the increased 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 rose by 25.2 percent in January from 23.9 percent in December, driven by the sustained increase in credit card and motor vehicle loans as well as salary-based general purpose consumption loans.
Meanwhile, domestic liquidity (M3) or money supply grew by 6.0 percent year-on-year to P17.0 trillion in January 2024. On a month-on-month seasonally-adjusted basis, M3 decreased by about 0.4 percent.
The BSP said it would ensure that liquidity and bank lending conditions remain in line with its price and financial stability objectives.
