Money supply and bank loans posted double-digit growth in December 2016, reflecting the robust domestic demand, Bangko Sentral ng Pilipinas said Tuesday.
Data showed domestic liquidity or the money supply increased 12.4 percent in December to hit P9.5 trillion, driven by the sustained demand for credit from the domestic economy.
The December expansion, however, was slightly slower than the 12.7-percent growth in November. On a month-on-month seasonally-adjusted basis, M3 increased 0.5 percent.
“The growth in M3 remains consistent with the BSP’s prevailing outlook for inflation and economic activity. Going forward, the BSP will continue to monitor monetary conditions closely to ensure that overall domestic liquidity dynamics stay in line with the BSP’s price and financial stability objectives,” Bangko Sentral said.
Meanwhile, outstanding loans of commercial banks, net of reverse repurchase placements with the Bangko Sentral, grew 17.2 percent in December, slower than the 18.6-percent rise in November.
Loans for production activities”•which comprised about 89.3 percent of banks’ aggregate loan portfolio, net of RRP “• grew 16.8 percent in December.
The growth in production loans was driven primarily by increased lending to the information and communication (40.9 percent); real estate activities (20.6 percent); electricity, gas, steam and air-conditioning supply (19.6 percent); financial and insurance activities (15.6 percent); wholesale and retail trade, repair of motor vehicles and motorcycles (12.4 percent); and manufacturing (6.3 percent).
Loans for household consumption also increased 22.8 percent in December on sustained growth in credit card loans, motor vehicle loans and salary-based general-purpose loans, offsetting the decline in other types of household loans.