Bank loans grew by nearly 12 percent year-on-year in March 2025, while domestic liquidity expanded by 6.1 percent to more than P18 trillion, the Bangko Sentral ng Pilipinas (BSP) said Thursday.
Outstanding loans of universal and commercial banks (U/KBs), net of reverse repurchase (RRP) placements with the BSP, increased by 11.8 percent year-on-year in March, slower than the 12.2-percent expansion in February.
The BSP said on a month-on-month seasonally-adjusted basis, outstanding U/KB loans, net of RRPs, rose by 0.9 percent.
Outstanding loans to residents, net of RRPs, expanded at a slower pace of 12.3 percent in March from 12.6 percent in February. Meanwhile, outstanding loans to non-residents decreased by 5.6 percent in March, following a 3.2-percent decline in the previous month.
Loans for production activities grew by 10.9 percent in March from 11.2 percent in February.
Loan growth eased due to the slower expansion in lending to key industries such as: real estate activities (9.6 percent); wholesale and retail trade, repair of motor vehicles and motorcycles (11.6 percent); information and communication (8.9 percent); construction (1.8 percent); arts, entertainment and recreation (12.6 percent); water supply, sewerage, waste management and remediation activities (12.9 percent); and accommodation and food service activities (19.3 percent).
Consumer loans to residents grew by 23.6 percent in March, from 24.1 percent in February, driven by the increase in credit card loans, motor vehicle loans and salary-based general purpose consumption loans.
Meanwhile, domestic liquidity (M3) grew by 6.1 percent year-on-year to about P18.2 trillion in March, following a 6.3-percent growth in February. On a month-on-month seasonally adjusted basis, M3 increased 0.7 percent.
Domestic claims rose by 10.4 percent year-on-year in March from 10.1 percent in February. Claims on the private sector grew by 11.5 percent in March from 12.3 percent in the previous month with the sustained expansion in bank lending to non-financial private corporations and households.
The BSP said it would continue to ensure that domestic liquidity conditions remain consistent with the prevailing stance of monetary policy, in line with its price and financial stability objectives.