Both bank loans and money supply continued to grow in October 2024, the Bangko Sentral ng Pilipinas (BSP) said Friday.
Preliminary data show that outstanding loans of universal and commercial banks, net of reverse repurchase (RRP) placements with the BSP, grew by 10.6 percent year-on-year in October.
This was slightly slower than the 11.0-percent expansion in September. On a month-on-month seasonally-adjusted basis, outstanding U/KB loans, net of RRPs, increased by 0.9 percent.
Outstanding loans to residents, net of RRPs, grew by 10.7 percent in October from 11.3 percent in the previous month.
Outstanding loans to non-residents1 rose by 6.8 percent in October after contracting by 0.3 percent in September.
Loans for production activities expanded by 9.1 percent in October from 9.8 percent in September on sustained lending to key industries such as real estate activities (up 11.3 percent); wholesale and retail trade, repair of motor vehicles and motorcycles (7.2 percent); and manufacturing (8.8 percent).
Meanwhile, consumer loans to residents grew by 23.6 percent in October from 23.4 percent in September, driven mainly by increased credit card and motor vehicle loans.
“Looking ahead, the BSP will continue to ensure that domestic liquidity and lending conditions are aligned with its primary mandate of ensuring price and financial stability,” the bank said.
Meanwhile, money supply or domestic liquidity (M3) grew by 5.5 percent year-on-year to about P17.7 trillion in October, the same pace as in the previous month.
On a month-on-month seasonally-adjusted basis, M3 marginally increased by about 0.5 percent.
Domestic claims expanded by 9.8 percent year-on-year in October from 9.6 percent in the previous month.
Claims on the private sector grew by 11.5 percent in October from 12.5 percent (revised) in September with the continued expansion in bank lending to non-financial private corporations and households.
Net claims on the central government expanded by 8.0 percent, compared to 6.6 percent in the previous month, amid higher borrowings by the national government.
Net foreign assets (NFA) in peso terms rose by 11.2 percent year-on-year in October from 8.6 percent in September.
The BSP’s NFA grew by 13.8 percent, reflecting the increase in gross international reserves. Meanwhile, the NFA of banks contracted, largely on account of higher bills and bonds 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.
