DESPITE high interest rates, bank lending grew in October this year, according to the Bangko Sentral ng Pilipinas (BSP).
The BSP said that based on preliminary data, the outstanding loans of universal and commercial banks went up by 7.1 percent year-on-year in October.
This was slightly faster than the 6.5-percent expansion in September, it added.
The growth in loans to consumers outpaced the growth in loans to businesses.
Consumer loans to residents grew by 22.8 percent in October from 23.5 percent in September mainly due to the sustained growth in credit card loans and faster increase in motor vehicle loans, the BSP said.
“Outstanding loans for production activities grew by 5.9 percent in October from 4.9 percent in September, largely driven by the growth in lending to key industries such as real estate activities (8.3 percent); electricity, gas, steam, and airconditioning supply (10.2 percent); and wholesale and retail trade, and repair of motor vehicles and motorcycles (9.3 percent),” the central bank added. (ABS-CBN News)
