BANK lending was steady while the amount of money circulating in the economy grew at a slower pace in November, the Bangko Sentral ng Pilipinas (BSP) reported late on Tuesday.
Outstanding loans of universal and commercial banks grew by 10.3 percent, unchanged from October based on preliminary data. Domestic liquidity, meanwhile, expanded by 7.6 percent to P19.4 trillion, slowing from 8.3 percent a month earlier.
Month on month and seasonally adjusted, bank lending and liquidity grew by 0.9 percent and 1.2 percent, respectively.
Reyes Tacandong & Co. senior adviser Jonathan Ravelas said bank lending steadied as the economy’s main drivers remained active.
He noted that business loans were solid, especially in sectors such as real estate, utilities, trade, transport, and information and communications technology, while consumer lending continued to lead growth, with credit card and salary loans rising by more than 20 percent.
“These are signs that spending hasn’t collapsed despite high rates,” Ravelas said. “But for lending to really accelerate, we’ll need clearer signals of easing inflation and eventually lower interest rates.”
The flood control scandal risks slowing that momentum, however, “not because credit fundamentals are weak, but because confidence can take a hit. When trust is shaken, investors hesitate, and banks become more cautious.”
“So the priority now is restoring credibility and strengthening transparency. If we fix that, and inflation continues to ease, lending growth can pick up more strongly by mid‑2026,” Ravelas said.
Outstanding loans to residents grew at a slower 10.7 percent from 10.9 percent in October while outstanding loans to nonresidents markedly fell by 4.5 percent from 11.1 percent.
Loans for business activities grew by 9.0 percent.
In particular, lending expanded for real estate activities (9.0 percent); electricity, gas, steam and air-conditioning supply (26.6 percent); wholesale and retail trade, repair of motor vehicles and motorcycles (11.6 percent); financial and insurance activities (3.5 percent); information and communication (7.0 percent); and transportation and storage (12.7 percent).
Consumer loans, meanwhile, posted slower growth of 22.9 percent from 23.1 percent. This included credit card, motor vehicle and general-purpose salary loans.
As for liquidity, domestic claims slightly rose to 10.6 percent in November from October’s 10.5 percent.
Private sector claims alone grew by 11.1 percent from 11.0 percent, which the BSP said was driven by the “continued expansion in bank lending to nonfinancial private corporations and households.”
Net claims on the central government also saw growth pick up to 11.0 percent from 10.0 percent, primarily driven by higher borrowings.
Net foreign assets ( As) in peso terms rose by 4.4 percent from 2.1 percent.
As of the central bank increased by 1.9 percent while those of banks rose as foreign currency-denominated bills payable declined.
The BSP said it would “ensure that domestic liquidity conditions remain consistent with its price and financial stability objectives.”
