BANK lending and liquidity growth both picked up in August, the Bangko Sentral ng Pilipinas (BSP) reported on Thursday.
Outstanding loans of universal and commercial banks expanded by 11 percent, preliminary central data showed, improving from July’s 10.4 percent.
The amount of money circulating in the economy, meanwhile, grew by 11.2 percent to P20.7 trillion from 10.3 percent a month earlier.
Outstanding loans to residents grew by 11.3 percent, up from 10.8 percent in June.
Loans for business activities, in particular, grew by 10.6 percent, with lending up for real estate; electricity, gas, steam and air-conditioning supply; wholesale and retail trade, and repair of motor vehicles and motorcycles; financial and insurance activities; manufacturing; information and communication; and transportation and storage.
Consumer loans, meanwhile, posted slower growth of 16.2 percent from 17.1 percent “due to slower expansion in credit card and motor vehicle loans.”
“The BSP monitors bank lending as it serves as a key monetary policy transmission channel,” the central bank said.
“Looking ahead, the BSP will continue to ensure that bank lending conditions remain consistent with its price and financial stability mandate,” it added.
for liquidity, growth in domestic claims rose to 12.8 percent from July’s 11.2 percent.As
Private sector claims alone grew by 12.6 percent from 12.1 percent, while net claims on the central government grew by 16.6 percent, markedly higher than 12.4 percent a month ago.
“Borrowing by the private and public sectors continued to support the expansion in M3,” the central bank said, adding that 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,” it added.
The central bank said it would continue to ensure that both bank lending and domestic liquidity conditions stayed consistent with price and financial stability objectives.
