Bank lending up 16.2% to P3.2T in 2012By Michelle V. Remo |Philippine Daily Inquirer
Bank lending in the country remained robust in 2012, as the combined loan portfolios of universal and commercial banks registered another double-digit expansion.
Banks last year continued to enjoy higher profits and deposits from the public, allowing them to lend more throughout 2012. The decline in interest rates to historic lows also served to boost public appetite for bank loans.
The Bangko Sentral ng Pilipinas on Wednesday reported that total outstanding loans from universal and commercial banks reached P3.24 trillion as of the end of 2012, rising by 16.2 percent from the P2.79 trillion registered the previous year.
The BSP said the growth in lending last year benefited both individuals and businesses.
Official data showed that private enterprises accounted for P2.96 trillion of the total outstanding loans extended by big banks. This was up by 16.6 percent year on year from P2.54 trillion.
Enterprises that benefited the most from bank lending included those engaged in real estate, financial intermediation, manufacturing, wholesale and retail trade, and transportation and communications.
A total of P257.38 billion worth of loans were extended to individual borrowers. The amount was 14.1 percent higher than the previous year’s P225.57 billion.
The double-digit growth in lending last year contributed much to the growth in the liquidity of the economy.
Also, the BSP on Wednesday reported that domestic liquidity, measured in terms of M3, amounted to P5.17 trillion as of end-2012, up by 10.6 percent from the previous year’s P4.67 trillion.