Money supply and bank loans grew at double-digit rates in February from a year ago, amid sustained demand for credit by households and businesses, Bangko Sentral ng Pilipinas said Thursday.
Data showed liquidity or money supply increased 11.8 percent in February to hit P8.4 trillion from P7.54 trillion. The growth picked up from the 11.5-percent expansion recorded in January.
“The continued expansion of money supply during the month indicates that domestic liquidity remains adequate to support the requirements of the economy. Going forward, the BSP will continue to monitor monetary conditions closely to ensure that liquidity in the financial
system stays in line with maintaining price and financial stability,” Bangko Sentral said.
Meanwhile, outstanding loans of commercial banks, net of reverse repurchase placements with Bangko Sentral, grew 16.9 percent in February, faster than the 15.8-percent rise in January.
Loans for production activities, which comprised more than 80 percent of banks’ aggregate loan portfolio, expanded 17.4 percent in February while for household consumption increased 15.7 percent.