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Monday, June 24, 2024

Bank loans fell 2% in June, says BSP

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Outstanding loans of universal and commercial banks, net of reverse repurchase placements with the Bangko Sentral ng Pilipinas, decreased 2 percent year-on-year in June following a 4-percent drop in May.

The BSP said that on a month-on-month seasonally-adjusted basis, outstanding universal and commercial bank loans, net of RRPs, went up by 1.1 percent.

“Outstanding loans to residents, net of RRPs, fell by 1.4 percent [from 3.5-percent contraction in May] while outstanding loans to non-residents decreased by 19.7 percent [from 18.8 percent decline last month], as concerns over the spread of new coronavirus variants continued to temper market sentiment and the outlook for economic recovery,” the BSP said.

Consumer loans to residents dropped 8.6 percent in June as motor vehicle loans and salary-based consumption loans declined further. Outstanding loans to major industries continued to fall, but at a slower rate.

Meanwhile, domestic liquidity or the money supply circulating in the financial system expanded by 6.4 percent year-on-year to about P14.4 trillion in June, faster than the 4.7-percent growth recorded in May.

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