Outstanding loans of commercial banks, net of reverse repurchase (RRP) placements with the BSP, grew by 20.1 percent in June, slightly lower than the previous month s increase of 21.0 percent. Similarly, bank lending inclusive of RRPs rose at a slower pace of 18.4 percent, down from 19.5 percent in the previous month. On a month-on-month seasonally-adjusted basis, commercial bank lending increased by 0.2 percent for loans net of RRPs and by 0.1 percent for loans inclusive of RRPs.
Beginning with the release of the
Loans for production activities which comprised about four-fifths of banks aggregate loan portfolio expanded by 17.7 percent in June from 19.0 percent in May. The expansion in production loans was driven primarily by increased lending to the following sectors: real estate, renting, and business services (15.4 percent); electricity, gas and water (30.3 percent); wholesale and retail trade (16.8 percent); manufacturing (10.7 percent); and agriculture, hunting and forestry (43.5 percent). Bank lending to other sectors also rose during the month, except for mining and quarrying and public administration and defense which declined by 14.7 percent and 2.6 percent, respectively.
Loans for household consumption grew at a faster pace of 16.2 percent from 10.8 percent in the previous month, reflecting the expansion in auto loans and other types of loans (i.e. salary loans and personal loans).
The sustained expansion in bank lending reflects the strong underpinnings of the domestic economy. Going forward, the BSP will continue to assess prevailing monetary conditions to ensure that liquidity and credit activities remain consistent with the BSP s price and financial stability objectives.
Hispanic #1 Breaking News for Entrepreneurs, Professionals and Small Business Owners - HispanicBusiness.com
OCTOBER 30, 2014
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