Domestic liquidity, also called M3, grew 8.2 percent year-on-year to about P11.1 trillion in October 2018, although it was slower than the 9.8-percent expansion in September, the Bangko Sentral ng Pilipinas said Thursday.
“Demand for credit remained the principal driver of money supply growth. Domestic claims grew by 15.2 percent in October, faster than the 14.8-percent [revised] growth in September 2018 due mainly to the sustained growth in credit to the private sector,” the BSP said in a statement.
Data also showed that outstanding loans of commercial banks, net of reverse repurchase placements with the BSP, grew18.1 percent in October, faster than the 17.6-percent rise in September.
Loans for production activities”•which comprised 88.7 percent of banks’ aggregate loan portfolio, net of RRP”•increased at a brisker pace at 18.7 percent in October from 17.4 percent in the previous month.
The growth of loans for household consumption slowed down to 14.6 percent in October from 18.2 percent in September, dragged down by the slower expansion in credit card loans and motor vehicle loans.