BANK lending slowed to a near two-year low in January while money circulating in the economy increased, the Bangko Sentral ng Pilipinas (BSP) reported late on Monday.
Outstanding loans of universal and commercial banks (U/KBs) expanded by 9.3 percent, preliminary BSP data showed, down from December’s revised 9.6 percent and the slowest since February 2024’s 8.6 percent.
Domestic liquidity, meanwhile, grew faster by 8.6 percent to P19.7 trillion from 7.2 percent a month earlier.
Month on month, outstanding U/KB loans rose by 1.0 percent after adjusting for seasonal fluctuations, while liquidity expanded by 0.8 percent.
Outstanding loans to residents grew at a slower 9.9 percent from a revised 10.1-percent expansion in December, while outstanding loans to nonresidents fell by a faster 10.4 percent from the month-earlier decline of 8.0 percent.
Loans for business activities, on the other hand, grew by 8.2 percent.
In particular, lending expanded for real estate activities (9.1 percent); electricity, gas, steam and air-conditioning supply (20.3 percent); wholesale and retail trade, repair of motor vehicles and motorcycles (8.3 percent); financial and insurance activities (5.5 percent); information and communication (4.9 percent); and transportation and storage (19.1 percent).
Consumer loans, meanwhile, posted slower growth of 21.3 percent from the revised 21.5 percent. This included credit card, motor vehicle and general-purpose salary loans.
As for liquidity, domestic claims rose by 10 percent in January, slowing from December’s revised 10.5 percent.
Private sector claims alone grew by 10.6 percent, slowing from 10.7 percent, which the BSP said was due to the “continued expansion in bank lending to non-financial private corporations and households.”
Net claims on the central government also saw growth ease to 8.9 percent from 10.8 percent, primarily driven by higher borrowings.
Net foreign assets in peso terms rose by 10.2 percent from 5.9 percent.
As of the BSP increased by 9.2 percent, while those of banks rose amid lower foreign currency-denominated bills payable.
The BSP said it would “ensure that domestic liquidity and bank lending conditions remain consistent with its price and financial stability mandates.” NIÑA MYKA PAULINE ARCEO
