Bank loans and money supply continued to expand in September 2024 on rising expenditures, data from the Bangko Sentral ng Pilipinas (BSP) showed over the weekend.
The BSP, citing preliminary data, said outstanding loans of universal and commercial banks (U/KBs), net of reverse repurchase (RRP) placements with the bank, went up by 11 percent year-on-year in September.
This expansion was slightly faster than the 10.7-percent growth registered in August 2024. On a month-on-month seasonally-adjusted basis, outstanding U/KB loans, net of RRPs, rose 0.8 percent, indicating a sustained growth in demand.
Outstanding loans to residents, net of RRPs, increased 11.3 percent in September, faster than 10.9 percent in the previous month.
Meanwhile, outstanding loans to non-residents decreased by 0.3 percent in September, after rising by 1.5 percent in August.
Loans for production activities grew by 9.8 percent in September, up from 9.4 percent in August. This was led by bank lending to key industries such as real estate activities (14.2 percent); wholesale and retail trade, repair of motor vehicles and motorcycles (12.0 percent); manufacturing (10.6 percent); and electricity, gas, steam and air-conditioning supply (7.5 percent).
Consumer loans to residents grew by 23.4 percent in September, from 23.7 percent in August mainly due to sustained growth in credit card loans.
Meanwhile, domestic liquidity (M3) or money supply grew by 5.4 percent year-on-year to about P17.6 trillion in September 2025, following a 5.5-percent increase in August. On a month-on-month seasonally-adjusted basis, M3 marginally increased by about 0.7 percent.
Domestic claims expanded by 9.6 percent year-on-year in September, compared to 10 percent in the previous month. Claims on the private sector grew by 12.4 percent in September, from 11.9 percent in August with the sustained expansion in bank lending to non-financial private corporations and households.
Net claims on the central government grew by 6.6 percent, slower compared to 8.5 percent in the previous month, as the increase in the national government’s (NG) deposits with the BSP tempered the increase in NG borrowings.
Net foreign assets (NFA) in peso terms rose 8.6 percent year-on-year in September, from 2.4 percent in August. The BSP’s NFA grew by 14.2 percent, reflecting the increase in gross international reserves.
Meanwhile, the NFA of banks contracted, largely on account of higher bills payable.
The BSP said it would continue to ensure that domestic liquidity conditions are consistent with the prevailing stance of monetary policy, in line with its price and financial stability objectives.
