Preliminary data show that domestic liquidity (M3) expanded by 8.3 percent year-on-year to about ₱14.8 trillion in November 2021, unchanged from the growth rate recorded in October.
On a month-on-month seasonally-adjusted basis, M3 increased by 0.5 percent.
Bangko Sentral ng Pilipinas said domestic claims grew by 8.1 percent year-on-year in November from 7.5 percent in the previous month due to the increase in net claims on the central government as well as the continued improvement in bank lending to the private sector.
Net claims on the central government rose by 23.9 percent in November from 21.7 percent in October on the back of sustained borrowings by the National Government.
Claims on the private sector, driven by bank lending to non-financial private corporations, increased by 3.0 percent in November from 2.6 percent in October.
Preliminary data show that outstanding loans of universal and commercial banks, net of reverse repurchase (RRP) placements with the BSP, expanded at a quicker pace of 4.0 percent year-on-year in November from 3.5 percent in October.
“Outstanding loans of big banks continue to gain traction amid businesses’ optimistic economic outlook due to the easing of COVID-19 restrictions and the continued rollout of vaccines,” BSP said.
On a month-on-month seasonally-adjusted basis, outstanding universal and commercial bank loans, net of RRPs, increased by 0.3 percent.
Outstanding loans to residents, net of RRPs, went up by 4.1 percent in November from 3.7 percent in October amid the continued expansion in loans for production activities.
Outstanding loans for production activities increased by 5.3 percent in November from 4.9 percent in October, driven by the growth in loans for real estate activities; information and communication; financial and insurance activities; manufacturing; and transportation and storage.
However, the fall in outstanding loans to other sectors such as agriculture, forestry and fishing as well as activities of households as employers and undifferentiated goods and services moderated the overall growth of outstanding loans for production.