BANK lending picked up in July but liquidity growth eased, the Bangko Sentral ng Pilipinas (BSP) reported on Tuesday.
Outstanding loans of universal and commercial banks (U/KBs) expanded by 10.4 percent, preliminary central data showed, improving from June’s 9.8 percent.
The amount of money circulating in the economy, meanwhile, grew by a slightly lower 10.3 percent to P20.5 trillion from 10.7 percent a month earlier.
Outstanding loans to residents grew by 10.8 percent, down from 11.9 percent in June, while loans for business activities grew by 9.8 percent.
Lending was said to have particularly expanded for electricity, gas, steam, and air conditioning supply (24.4 percent); wholesale and retail trade, and repair of motor vehicles and motorcycles (8.8 percent); manufacturing (9.0 percent); financial and insurance activities (5.4 percent); and information and communication (7.1 percent).
Consumer loans, meanwhile, posted slower growth of 17.1 percent from 17.8 percent as “growth in credit card and motor vehicle loans softened as consumer confidence remained weak.” “The BSP monitors bank lending as it serves as a key monetary policy transmission channel,” the central bank said in a statement.
“Looking ahead, the BSP will continue to ensure that bank lending conditions remain consistent with its price and financial stability mandate,” it added.
As for liquidity, growth in domestic claims eased to 11.2 percent from June’s 11.1 percent.
Private sector claims alone grew by 12.1 percent from 11.9 percent, while net claims on the central government grew by 12.4 percent, down from 13.2 percent a month ago.
“Bank lending continued to channel funds to production sectors and households,” the BSP said.
“The national government’s issuance of debt securities and withdrawal of deposits from the BSP and banks to finance spending also supported domestic 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.
