The Bangko Sentral ng Pilipinas said outstanding loans of universal and commercial banks, net of reverse repurchase (RRP) placements with the BSP, grew by 10.1 ercent in November, faster than the 9.3-percent expansion in the previous month.
On a month-on-month seasonally-adjusted basis, commercial bank loans net of RRPs grew by 1.0 percent.
Loans for production activities—which comprised 87.2 percent of banks’ aggregate loan portfolio, net of RRPs—expanded at a rate of 8.1 percent in November, higher than the reported growth in October at 7.5 percent.
The sustained increase in production loans was driven primarily by lending to the following sectors: real estate activities; financial and insurance activities; construction; and electricity, gas, steam and air conditioning supply.
Bank lending to other sectors also increased during the month, except those to manufacturing, mining and quarrying, professional, scientific and technical activities, and other community, social and personal activities.
Loans from universal and commercial banks for household consumption grew by 26.6 percent in November from 26.7 percent in October due to faster growth in motor vehicle loans during the month.
Meanwhile, domestic liquidity (M3) expanded by 9.8 percent year-on-year to about P12.4 trillion in November 2019, faster than the 8.5-percent growth in October. On a month-on-month seasonally-adjusted basis, M3 increased by 1.7 percent.
Demand for credit remained the principal driver of money supply growth. Domestic claims grew by 8.3 percent in November from 6.7 percent in the previous month due mainly to the sustained growth in credit to the private sector.
Loans for production activities continued to be driven by lending to key sectors such as real estate activities; financial and insurance activities; construction; and electricity, gas, steam and airconditioning supply.
Loans for household consumption increased due to faster growth in motor vehicle loans during the month.
Meanwhile, net claims on the central government grew by 13.9 percent in November from 6.6 percent (revised) in October, due in part to the sustained increase in borrowings by the National Government.
Net foreign assets (NFA) in peso terms expanded by 11.5 percent in November from 9.6 percent in the previous month. The BSP’s NFA position increased during the month, supported by foreign exchange inflows coming mainly from overseas Filipinos’ remittances and business process outsourcing receipts.
Similarly, the NFA of banks increased as their foreign assets grew as a result of higher loans and investments in marketable debt securities.