Philippine bank lending and domestic liquidity grew at a faster pace in February compared to the previous month, according to preliminary data released by the Bangko Sentral ng Pilipinas (BSP).
Outstanding loans from universal and commercial banks, excluding reverse repurchase agreements, increased 9.5 percent year-on-year in February, picking up from the 9.3 percent growth recorded in January. On a month-on-month seasonally adjusted basis, big bank lending rose 0.8 percent.
Domestic liquidity, or M3, expanded 10.3 percent from a year earlier to P19.8 trillion, faster than the 8.6 percent growth seen in January. M3 is a broad measure of money supply that includes currency in circulation and bank deposits.
“The BSP will ensure that domestic liquidity and bank lending conditions remain consistent with its price and financial stability mandates,” the BSP said in a statement.
Loans for business activities grew 8.6 percent in February from 8.2 percent in January. The expansion was led by key sectors including water supply and waste management at 26.0 percent, electricity and gas supply at 23.5 percent, and transportation and storage at 19.3 percent. Real estate activities rose 9.0 percent, while wholesale and retail trade grew 8.2 percent.
Consumer loans to residents saw a slight deceleration, growing 20.8 percent in February compared to 21.3 percent in January, which the BSP attributed to a modest slowdown in credit card and motor vehicle loans.
Domestic claims, which represent liabilities of private and government entities to banks, rose 11.0 percent year-on-year. Net claims on the central government jumped 12.4 percent, driven by higher borrowings, while claims on the private sector maintained a 10.6 percent growth rate.
Net foreign assets in peso terms grew 7.4 percent in February, a slowdown from the 10.2 percent growth in January. The BSP noted that its own net foreign assets increased 4.1 percent during the period.
The BSP said it monitors these indicators as primary transmission channels for monetary policy to manage inflation and support economic growth.
 rose 10.3 percent in February, driven by business loans and government borrowing, according to BSP data.){kind=link}