Leading banks in the Philippines recorded a 7.2 percent year-on-year increase in outstanding loans during the month of August, marking a slower growth rate compared to the 7.7 percent expansion witnessed in July, according to data released by the Bangko Sentral ng Pilipinas (BSP).
This marks the fifth consecutive month where credit growth has tapered in comparison to the preceding period.
The BSP has vowed to “continue to ensure that domestic liquidity and lending dynamics remain consistent with its price and financial stability mandates.
On a month-on-month seasonally-adjusted basis, the combined outstanding loans of the 45 universal and commercial banks, excluding reverse repurchase (RRP) placements with the BSP, experienced a modest increase of 0.6 percent.
In terms of domestic liquidity, as measured by M3, the month of August saw a robust growth of 6.8 percent, reaching P16.466 trillion. This represented a 5.7 percent growth in July.
On a seasonally-adjusted month-on-month basis, M3 rose by 1.6 percent.
Outstanding loans reached P9.579 trillion, up by 5.5 percent in August but lower than the 6.2 percent recorded in July.
The BSP underscored the sustained expansion in lending to key sectors. Real estate recorded a 5.7 percent growth, while electricity, gas, steam, and air conditioning supply witnessed a robust nine percent surge.
Wholesale and retail trade, coupled with the repair of motor vehicles and motorcycles, saw a 7.1 percent increase while information and communication recorded 10.7 percent uptick. Financial and insurance activities registered a 6.1 percent growth.
Credit card loans experienced a 29.7 percent surge in August, while car loans and salary-based general-purpose consumption loans also saw a 10.9 percent and 17.7 percent growth, respectively, reinforcing the resilience of consumer lending in the country’s banking sector