BANK lending and money circulating in the economy both picked up in February, the Bangko Sentral ng Pilipinas (BSP) reported late Tuesday.
The outstanding loans of universal and commercial banks (U/KBs) grew by 9.5 percent, preliminary BSP data showed, improving from January’s 9.3 percent.
Domestic liquidity, meanwhile, grew by a faster 10.3 percent to P19.8 trillion from 8.6 percent a month earlier.
Month on month, outstanding U/KB loans rose 0.8 percent after adjusting for seasonal fluctuations while liquidity expanded by 1.2 percent.
Outstanding loans to residents grew by a slightly higher 10.1 percent from 9.9 percent, while outstanding loans to nonresidents fell by a faster 13.2 percent from -10.4 percent.
Loans for business activities, meanwhile, grew by 8.6 percent.
In particular, lending expanded for electricity, gas, steam, and air-conditioning supply (23.5 percent); real estate (9.0 percent); wholesale and retail trade and repair of motor vehicles and motorcycles (8.2 percent); transportation and storage (19.3 percent); and water supply, sewerage, waste management and remediation activities (26.0 percent).
Consumer loans, meanwhile, posted slower growth of 20.8 percent from 21.3 percent “due to the modest slowdown in credit card and motor vehicle loans.”
As for liquidity, domestic claims rose by 11.0 percent in February, slowing from January’s 10.0 percent.
Private sector claims alone were unchanged at 10.6 percent, which the BSP said was due to the “continued expansion in bank lending to nonfinancial private corporations and households.”
Net claims on the central government saw growth increase to 12.4 percent from 8.9 percent, primarily driven by higher borrowings.
Net foreign assets ( As) in peso terms, meanwhile, dropped by 7.4 percent from 10.2 percent.
The BSP’s As increased by 4.1 percent, while those of banks were said to have risen amid lower foreign currency-denominated bills payable.
Looking ahead, the BSP will ensure that domestic liquidity and bank lending conditions remain consistent with its price and financial stability mandates,” the central bank said.