Bank lending and money supply growth continued to record double-digit increases in August of this year, data from the Bangko Sentral ng Pilipinas (BSP) showed.
Data released Wednesday showed that lending by universal and commercial banks accelerated to 11 percent in August from 10.4 percent in July.
The outstanding loans of these big banks reached PHP15.12 trillion during the month, up from PHP14.9 trillion in July of this year.
This also represents an increase from the PHP13.5 trillion recorded in August last year.
Outstanding loans to residents, which account for the bulk of total bank lending, rose by 11.3 percent.
Loans for business activities also grew by 10.6 percent, driven by increased lending to key sectors including real estate; electricity, gas, steam, and air-conditioning supply; wholesale and retail trade; repair of motor vehicles and motorcycles; financial and insurance activities; manufacturing; information and communication; and transportation and storage.
Growth in consumer loans to residents, however, eased to 16.2 percent from 17.1 percent in July due to a slower expansion in credit card and motor vehicle loans.
Meanwhile, preliminary data showed that domestic liquidity (M3) grew by 11.2 percent to PHP20.7 trillion in August amid faster growth in credit activity.
M3 is a broad measure of money supply that includes currency in circulation, bank deposits, and other financial assets that are readily convertible to cash.
The BSP said continued borrowing by both the private and public sectors supported this M3 expansion, as banks sustained lending to businesses and households.
National government financing activities, including debt issuances and withdrawal of deposits from the BSP and banks, also contributed to liquidity growth. (PNA)







