Big banks’ outstanding loans grew 11.3 percent year-on-year in May, compared with an 11.2 percent increase in April, with borrowers expecting interest rates to drop further this year, the Bangko Sentral ng Pilipinas (BSP) said on Monday.
The country’s domestic liquidity, or M3, expanded by 5.5 percent in May, slightly slower than the 5.8 percent rise recorded in April, the BSP said in a separate report.
Bank lending in peso value amounted to P13.369 trillion, net of reverse repurchase (RRP) deals.
M3 — a measure of money supply or broad money that includes currencies in circulation, financial assets and bank deposits — totaled P18.354 trillion.
A slight improvement was seen in the universal and commercial banks’ loans as more business and consumer activities were monitored in May, while inflation remained on the low side.
The BSP said it will “ensure that domestic liquidity and bank lending conditions remain aligned with its price and financial stability objectives.”
Productivity loans rose 10.2 percent to P11.347 trillion in May, compared with April’s 10.3 percent growth, based on data.
Under business loans, real estate activities rose by 8.7 percent to P2.697 trillion; wholesale and retail trade, and repair of motor vehicles and motorcycles expanded by 9.8 percent to P1.499 trillion; while loans to transportation and storage increased by 14 percent to P519.744 billion.
Consumer loans such as car, motorcycle, credit card, and general-purpose salary loans, grew by 23.7 percent to P1.698 trillion in May, a slower expansion than April’s 24 percent.
Month-on-month, bank lending rose by 0.9 percent in May from April after adjustments to seasonal fluctuations. As for M3, this also slightly increased by 0.7 percent in May.
The BSP ensures money supply conditions “remain consistent with the prevailing stance of monetary policy.” The Monetary Board, BSP’s policy-making arm, has signaled it will continue to ease benchmark rates this year.
Under M3, claims on the domestic sector — which includes private and government entities — increased by 10.7 percent year-on-year in May versus 10.9 percent in April.
The BSP said claims on the private sector grew by 10.9 percent in May, compared with an 11.5 percent rise in April. “(This is) driven by the continued expansion in bank lending to non-financial private corporations and households,” it added.
On the other hand, net claims on the central government increased by 9.1 percent in May, compared with a 9.3 percent rise in April.
The BSP said “NFA (net foreign assets) fell by 4.4 percent primarily due to the peso’s appreciation against the US dollar.” Banks’ NFA declined “largely on account of higher foreign currency-denominated bills payable,” it said. Big banks’ outstanding loans grew 11.3 percent year-on-year in May, compared with an 11.2 percent increase in April, with borrowers expecting interest rates to drop further this year, the Bangko Sentral ng Pilipinas (BSP) said on Monday.
The country’s domestic liquidity, or M3, expanded by 5.5 percent in May, slightly slower than the 5.8 percent rise recorded in April, the BSP said in a separate report.
Bank lending in peso value amounted to P13.369 trillion, net of reverse repurchase (RRP) deals.
M3 — a measure of money supply or broad money that includes currencies in circulation, financial assets and bank deposits — totaled P18.354 trillion.
A slight improvement was seen in the universal and commercial banks’ loans as more business and consumer activities were monitored in May, while inflation remained on the low side.
The BSP said it will “ensure that domestic liquidity and bank lending conditions remain aligned with its price and financial stability objectives.”
Productivity loans rose 10.2 percent to P11.347 trillion in May, compared with April’s 10.3 percent growth, based on data.
Under business loans, real estate activities rose by 8.7 percent to P2.697 trillion; wholesale and retail trade, and repair of motor vehicles and motorcycles expanded by 9.8 percent to P1.499 trillion; while loans to transportation and storage increased by 14 percent to P519.744 billion.
Consumer loans such as car, motorcycle, credit card, and general-purpose salary loans, grew by 23.7 percent to P1.698 trillion in May, a slower expansion than April’s 24 percent.
Month-on-month, bank lending rose by 0.9 percent in May from April after adjustments to seasonal fluctuations. As for M3, this also slightly increased by 0.7 percent in May.
The BSP ensures money supply conditions “remain consistent with the prevailing stance of monetary policy.” The Monetary Board, BSP’s policy-making arm, has signaled it will continue to ease benchmark rates this year.
Under M3, claims on the domestic sector — which includes private and government entities — increased by 10.7 percent year-on-year in May versus 10.9 percent in April.
The BSP said claims on the private sector grew by 10.9 percent in May, compared with an 11.5 percent rise in April. “(This is) driven by the continued expansion in bank lending to non-financial private corporations and households,” it added.
On the other hand, net claims on the central government increased by 9.1 percent in May, compared with a 9.3 percent rise in April.
The BSP said “NFA (net foreign assets) fell by 4.4 percent primarily due to the peso’s appreciation against the US dollar.” Banks’ NFA declined “largely on account of higher foreign currency-denominated bills payable,” it said. – Lee Chipongian
