PHILIPPINE BANKS’ outstanding loans to businesses and consumers grew by over 10% in July, preliminary Bangko Sentral ng Pilipinas (BSP) data showed.
Universal and commercial banks’ total outstanding loans, net of reverse repurchase agreements, grew by 10.4% year on year to P14.98 trillion at end-July from P13.574 trillion, the central bank said on Tuesday.
This was faster than the 9.8% expansion in June, and was the quickest lending growth seen in two months or since the 12.1% in May.
Broken down, BSP data showed big banks’ outstanding loans to residents climbed 10.8% to P14.686 trillion as of July from P13.259 trillion a year ago, faster than June’s 10.3% growth. This accounted for the bulk of the sector’s total outstanding loans during the period.
For nonresidents, bank lending dropped by 6.8% to P294.331 billion in July from P315.804 billion last year. This was slower than the 10.2% decline in June.
The central bank monitors banks’ lending activities to track the transmission of monetary policy.
“Looking ahead, the BSP will continue to ensure that bank lending conditions remain consistent with its price and financial stability mandate,” it said. — Katherine K. Chan
