Quantcast
Latest Stories

Bank lending still up by a double-digit pace



Banks started the year on a high note as the loans they extended continued to rise by a double-digit pace in January.

The Bangko Sentral ng Pilipinas on Friday reported that outstanding loans from universal and commercial banks in the country reached P3.18 trillion as of the end of January—up by 15.4 percent from the P2.76 trillion posted in the same period last year.

According to the BSP, the robust pace of credit growth during the month supported expectations that bank lending will continue to help fuel expansion of the economy this year. Industry projections point to a 10-15 percent growth in lending this year.

“Sustained credit growth is expected to support the momentum of the economy,” the central bank said.

The BSP said the increase in outstanding bank loans would boost consumption and investment activities in the country. Outstanding loans to businesses accounted for nearly P2.9 trillion of the total—up by 15.6 percent from last year’s P2.5 trillion.

Those that benefited the most from the increase in lending were companies engaged in real estate, transportation and communication, wholesale and retail trade, and manufacturing.

Outstanding loans to individuals accounted for P257.44 billion of the total—up by 12.5 percent from P228.78 billion a year ago.

Credit card transactions, as well as automobile, housing, and personal loans accounted for the bulk of individual borrowings.

In a separate statement, the BSP said the overall liquidity in the economy likewise registered a double-digit rise in January, aided partly by the growth in bank lending.

Domestic liquidity, measured in terms of M3, grew by 10.8 percent year-on-year to P4.97 trillion.

M3 is a broad measure of liquidity, covering currencies in circulation, savings deposits, time deposits, demand deposits, and money market instruments.

The strong pace of credit growth seen over the past few years has stoked concerns that the Philippine economy may overheat. Some analysts believe that substantial growth in credit tends to accelerate demand for goods and services, thereby pushing inflation to worrisome levels. But the BSP stressed that banks could still lend more without causing the economy to overheat.

Also, the BSP expects inflation to remain benign over the medium term. Based on its latest projections, inflation would likely settle below 4 percent this year and the next. Michelle V. Remo


Follow Us


Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: bank lending , BSP , Business



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement

News

  • $57-B mega plan to solve Metro’s mega woes
  • Aquino vows to step up fight against corruption
  • Santiago scoffs at rushing defense pact for Obama visit
  • Former solon, 2 others sanctioned for unfair labor practice
  • Let us pray for the nation, healing priest asks leaders
  • Sports

  • PH Am match play golf under way at Orchard
  • Road Warriors target win No. 6 vs Oilers
  • UE Warriors test new system in Filoil Hanes Cup
  • Boxer Rubin ‘Hurricane’ Carter dies at 76
  • Wawrinka beats Federer to win Monte Carlo Masters
  • Lifestyle

  • Transitions and resurrection in the performing arts
  • ‘Archaeology tour’ of Cebu’s heritage of faith
  • Historic Fort Bonifacio tunnel converted into a septic tank
  • ‘Imports’ from London, and play of the year
  • Korean animation comes of age
  • Entertainment

  • Easter musings
  • Solenn in shorts
  • Unmerry mix of attention-calling moves on ‘Mini-Me’ TV tilts
  • Persistence pays off for The 1975
  • Special section in LA fest for Filipino films
  • Business

  • BDO seen keen on bidding for Cocobank
  • Bataan freeport investment pledges up 1,302%
  • Golden Week
  • Bourse to woo Cebu stock mart investors
  • Supper power
  • Technology

  • Nasa’s moon-orbiting robot crashes down
  • Netizens pay respects to Gabriel Garcia Marquez
  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Facebook rolls out ‘nearby friends’ feature
  • Netizens seethe over Aquino’s ‘sacrifice’ message
  • Opinion

  • Gigi’s home
  • Palace stonewalls on MRT inquiry
  • Couple of things too
  • There is plenty of water behind Wawa Dam
  • Triduum thoughts of a young boy
  • Global Nation

  • Search for Etihad passengers launched
  • Japan presents $57-B ‘dream plan’ to solve Metro congestion
  • Tim Tebow’s charity hospital in Davao seen to open in 7 months
  • OFW died of Mers-CoV in Saudi Arabia, says family
  • Aquino, Obama to tackle US pivot to Asia during state visit
  • Marketplace