LOANS issued by the big banks in the Philippines grew at a slower pace in April following the consecutive tightening of monetary policy, data released by the Bangko Sentral ng Pilipinas (BSP) yesterday showed.
Outstanding loans by big banks grew by 9.7 percent to P10.864 trillion from P9.905 trillion a year ago, marking a slowdown from the revised 10.2 percent growth in March which was the fastest since the 10.4 percent recorded in January.
Month-on-month, loans of universal and commercial banks, net of reverse repurchase placements (RRPs), increased by 0.6 percent.
Total loans to residents net of RRPs stood at P10.545 trillion, reflecting a 9.6 percent increase from P9.621 trillion the same month in 2022.
Outstanding loans for production activities grew by 8.3 percent to P9.469 trillion, with the biggest jumps seen in administrative and support services activities (33.1 percent), water supply sewerage, waste management, and remediation activities (22.3 percent), and information and communication (19.0 percent).
Declines were recorded in loans for professional, scientific, and technical services (-40.6 percent), education (-4.7 percent), and accommodation and food service activities (-1.0 percent).
Meanwhile, consumer loans increased by 22.3 percent to P1.077 trillion, faster than the 21.8 percent annual growth in the previous month.
Credit card activities inched up by 29.9 percent, motor vehicle loans by 1.9 percent, salary-based general purpose consumption loans by 56.2 percent, and other loans by 66.8 percent.
“The sustained expansion in bank lending activity suggests that domestic liquidity remains sufficient to support economic activity,” BSP Governor Felipe Medalla said.
Domestic liquidity
Data released separately show that domestic liquidity or M3 stood at P16.251 trillion in April, 6.6 percent higher than P15.249 trillion in April 2022, and 0.2 percent higher than P16.212 trillion in March.
The increase in M3 — considered as the broadest measure of money in the financial system — comes as domestic claims rose by 11.9 percent. Claims on the private sector increased by 9.7 percent, while net claims on the central government jumped by 20.1 percent.
Net foreign assets (NFA) in peso terms fell by 0.2 percent, on the back of higher bills payable. The BSP’s NFA position expanded by 2.5 percent.
“Looking ahead, the BSP will continue to ensure that domestic liquidity and credit dynamics are consistent with the prevailing stance of monetary policy, in keeping with its price and financial stability mandates,” Medalla said. (GMA Integrated News)
