Domestic liquidity, or money supply, increased 11.5 percent year-on-year to reach P8.3 trillion in January, amid strong demand for credit, Bangko Sentral ng Pilipinas said Monday.
Data from Bangko Sentral showed the January expansion was faster than the revised 9.4-percent growth in December 2015.
Domestic claims grew 14.4 percent in January, faster than 11.4-percent rise in December. Credits to the private sector increased at a faster pace relative to the previous month.
The bulk of bank loans were channeled to key production sectors such as real estate activities; electricity, gas, steam and air-conditioning supply; wholesale and retail trade, and repair of
motor vehicles and motorcycles; manufacturing; and information and communication.
Meanwhile, net public sector credit rose 22.5 percent in January, faster than the 12.9-percent growth a month earlier.
Net foreign assets in peso terms grew 7.9 percent in January. Bangko Sentral’s net foreign assets
position continued to expand on the back of robust foreign exchange inflows coming mainly from overseas Filipino remittances and business process outsourcing receipts.
“The continued expansion of domestic liquidity during the month indicates that money supply remains adequate to support economic growth,” Bangko Sentral said.
Meanwhile, outstanding loans of commercial banks, net of reverse repurchase placements with Bangko Sentral, expanded 15.8 percent in January, also faster than 13.6 percent in December.
Loans for production activities, which represented more than 80 percent of banks’ aggregate loan portfolio, grew 16 percent in January, picking up from 13.7 percent in December.
The expansion in production loans was driven primarily by increased loans to real estate activities (23.4 percent); electricity, gas, steam and air-conditioning supply (35.7 percent); wholesale and retail trade, repair of motor vehicles and motorcycles (13.7 percent); manufacturing (5.5 percent); and information and communication (27.3 percent).
Bank lending to other sectors also expanded except for other community, social and personal activities, which declined by 7.2 percent.
Meanwhile, loans for household consumption increased 16.3 percent in January, higher than 15.1 percent in December due to the expansion of credit card loans and auto loans as well as sustained expansion in salary-based general purpose loans.