Preliminary data on outstanding loans of commercial banks, net of reverse repurchase (RRP) placements with the BSP, expanded at a slightly faster rate of 19.5 percent in February from 19.0 percent (revised) in January. Meanwhile, the growth of bank lending inclusive of RRPs decelerated to 17.6 percent in February from 18.4 percent (revised) in the previous month. On a month-on-month seasonally-adjusted basis, commercial bank loans net of RRPs and loans inclusive of RRPs increased by 1.8 percent and 1.1 percent, respectively.
Loans for production activities—which comprised 88.4 percent of banks' aggregate loan portfolio, net of RRP — grew by 18.6 percent in February from 18.0 percent (revised) in the previous month. The growth in production loans was driven primarily by increased lending to the following sectors: real estate activities (18.1 percent); electricity, gas, steam and air conditioning supply (28.5 percent); wholesale and retail trade, repair of motor vehicles and motorcycles (18.5 percent); manufacturing (10.7 percent); financial and insurance activities (15.3 percent); and, information and communication (28.8 percent). Bank lending to other sectors also increased during the month except in agriculture, forestry and fishing (-11.4 percent), and administrative and support services activities (-40.0 percent).
Growth in loans for household consumption slowed down to 19.9 percent in February from 20.2 percent (revised) in January. The slower increase in motor vehicle loans and contraction in other types of household loans offset the faster expansion in credit card loans and salary-based general purpose loans in February.
The BSP will continue to ensure that the expansion in domestic credit and liquidity proceeds in line with overall economic growth while remaining consistent with the BSP's price and financial stability objectives.
By: Lou Ellen L. Antonio MARAWI CITY,-– Dubbed “Launching of Farm Mechanization Program and Turn Over of Special Area for Agricultural Development Projects,” the Department of Agriculture (DA) distributed farm inputs and equipment to provide livelihood assistance to the crisis-affected...