Bank loans and money supply increased at double-digit levels in September from a year ago, in line with the overall economic growth, the Bangko Sentral ng Pilipinas said Tuesday.
Data showed that outstanding loans of commercial banks, net of reverse repurchase placements with the Bangko Sentral, grew 21.1 percent in September, faster than 20.4 percent in August.
Bank loans, inclusive of RRPs, increased 20.1 percent in September, also higher than 17.9 percent in August.
Loans for production activities, which comprised 88.8 percent of banks’ aggregate loan portfolio net of RRPs, grew 20.7 percent in September, also up from 19.5 percent in August.
Growth in loans for household consumption slowed down to 20 percent in September from 22.8 percent in August. The expansion in credit loans was tempered by the slower growth in motor vehicle loans, salary-based general purpose loans and other types of household loans.
“The BSP will continue to ensure that the expansion in domestic credit and liquidity conditions proceeds in line with overall economic growth,” it said.
Meanwhile, domestic liquidity or the money supply circulating in the financial system in September 2017 grew 14.5 percent year-on-year to P10.1 trillion, slower than the 15.4-percent expansion in August.
Domestic claims grew 16.1 percent, slower than the 16.9-percent increase in August.
“The overall pace of growth of M3 remains in line with the BSP’s prevailing outlook for inflation and economic activity. Nevertheless, the BSP will continue to monitor monetary conditions closely to ensure that domestic liquidity conditions remain consistent with the price
and financial stability objectives,” it said.
Net foreign assets in peso terms were flat year-on-year terms in September, after growing by 6.4 percent in the previous month.
The Bangko Sentral’s net foreign asset position declined in September, reflecting the decrease in gross international reserves.
Credit to the private sector continued to expand at a robust pace due to sustained demand for credit, even as lending to households slowed.