Lending by Philippine banks jumps to US$75 billion in July

Indicates strong demand for loans from businesses and households.

The Bangko Sentral ng Pilipinas said bank lending grew at a moderate pace in July, rising 12.3% to US$75 billion from US$45 billion on-year. The growth level was the same as in June.

Lending rose 11.7% to US$81 billion from US$73 billion last year. This growth level was slower than the 13% recorded in June, however.

Loans extended for production activities, which comprised over four-fifths of the entire credit portfolio, grew 11% to US$68 billion in July from US$50 billion last year. This growth, however, was slower than the 12.2% expansion in June.

Loans for production activities were mostly extended for the real estate sector (US$13.8 billion); manufacturing (US$12.3 billion); wholesale and retail trade (US$10.7 billion); electricity, gas and water (US$74.8 billion) and financial intermediation (US$6.4 billion).

Consumer loans, meanwhile, jumped 12.3% to US$6.1 billion in July from US$5.4 billion a year ago.

BSP said it will closely monitor liquidity and credit conditions to ensure that these continue to be supportive of the growth momentum of the economy while remaining consistent with the BSP’s price and financial stability objectives.