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Bank loans, money supply grew slower in September

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Bank loans and money supply grew at slower rates in September after the Bangko Sentral ng Pilipinas raised the benchmark borrowing rate by a total of 150 basis points this year.

Preliminary data showed bank lending grew 17.4 percent in September from a year ago, slower than the 18.9-percent rise in August.

The growth in bank lending inclusive of reverse repurchases eased to 16.3 percent in September from 18.4 percent in the previous month.  On a month-on-month seasonally-adjusted basis, commercial bank loans net of RRPs and loans inclusive of RRPs increased by 0.9 percent and 1.2 percent, respectively. 

The BSP said loans for production activities”•which comprised 88.7 percent of banks’ aggregate loan portfolio, net of RRP “• increased a17.2 percent in September, slower than 19.1 percent in August.

Meanwhile, loans for household consumption picked up 17.9 percent in September, faster than 15.8 percent in the previous month. 

The faster expansion in motor vehicle loans as well as the growth in credit card loans and salary-based general purpose consumption loans offset the decline in other types of household loans during the month. 

“The BSP will continue to ensure that the expansion in domestic credit and liquidity proceeds in line with overall economic growth while remaining consistent with the BSP’s price and financial stability objectives,” the BSP said.

Meanwhile, domestic liquidity, or the money supply circulating in the financial system, rose 9.7 percent year-on-year to P11.2 trillion in September this year.  This was slower than the 10.4-percent expansion in August. 

Data showed that on a month-on-month seasonally-adjusted basis, M3 increased 0.1 percent. 

Domestic claims grew 14.5 percent in September, slower than the 15-percent increase in the previous month as growth in credit to the private sector eased. 

“Loans for production activities continued to be driven by lending to key sectors such as wholesale and retail trade, repair of motor vehicles and motorcycles; real estate activities; manufacturing; financial and insurance activities; electricity, gas, steam and air-conditioning supply; and construction,” the BSP said.

The growth in loans for household consumption accelerated owing to the faster expansion in motor vehicle loans, credit card loans and salary-based general purpose consumption loans.


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