Domestic liquidity or the money supply circulating in the financial system grew 6.4 percent year-on-year to about P11.7 trillion in May 2019, the Bangko Sentral ng Pilipinas said Friday.
The growth in May, however, was slower than the 7-percent expansion registered in April 2019.
“Demand for credit eased slightly but remained the principal driver of money supply growth,” the BSP said in a statement.
Meanwhile, outstanding loans of universal and commercial banks, net of reverse repurchase placements with the BSP, grew 11.9 percent in May. This growth was also slower than the 12.7-percent expansion in April.
Loans for production activities which comprised 88.2 percent of banks’ aggregate loan portfolio increased 11.5 percent in May. This was driven by lending to real estate activities (13.6 percent); financial and insurance activities (21.2 percent); manufacturing (11.6 percent); electricity, gas, steam and air conditioning supply (13.1 percent); construction (43.0 percent); and wholesale and retail trade, repair of motor vehicles and motorcycles (9.3 percent).
Meanwhile, loans for household consumption grew by 14.6 percent in May, slower than the 15-percent increase in April.