Bank lending sustained its double-digit expansion in March as the economy returns to greater normalcy.
Preliminary data from the Bangko Sentral ng Pilipinas on Monday showed that outstanding loans of universal and commercial banks, net of reverse repurchase placements with the BSP, expanded by 10.1 percent year-on-year in March 2023, broadly steady from 10.0 percent in February.
The BSP said that on a month-on-month seasonally-adjusted basis, outstanding universal and commercial bank loans, net of RRPs, increased slightly by 0.2 percent.
“The sustained growth in credit is supported by sound Philippine banking system conditions. Looking ahead, the BSP will continue to monitor domestic liquidity dynamics to ensure that credit conditions remain in line with its price and financial stability mandates,” the BSP said in a statement.
Outstanding loans to residents, net of RRPs, rose 10.0 percent in March from 9.9 percent in the previous month.
Outstanding loans for production activities grew by 8.9 percent in March from 8.7 percent in February, mainly due to the sustained increase in credit to major industries, specifically electricity, gas, steam, and airconditioning supply (12.5 percent); wholesale and retail trade, and repair of motor vehicles and motorcycles (10.5 percent); financial and insurance activities (13.1 percent); manufacturing (9.1 percent); and real estate activities (4.2 percent).
Meanwhile, consumer loans to residents rose 21.3 percent in March, the same rate as in the previous month, with the expansion in credit card, motor vehicle and salary-based general purpose consumption loans.
Outstanding loans to non-residents also increased by 12.6 percent in March from 14.8 percent in the previous month.
The BSP also said that domestic liquidity grew by 6.0 percent year-on-year to about P16.2 trillion in March 2023, the same rate of expansion recorded in the previous month. On a month-on-month seasonally-adjusted basis, liquidity increased by about 0.2 percent.
