Growth in lending by commercial banks slowed to 21.9 percent year-on-year in October from 24.8 percent in September, the central bank, Bangko Sentral ng Pilipinas (BSP), reported Monday.

Including lending to the central bank, commercial banks? the total outstanding loans grew 24.8 percent year-on-year in October, accelerating slightly from a 24.1-percent rise in September, the BSP said.

?Despite the global financial crisis, lending activity has continued to be robust, providing the needed financing for the economy?s growth requirements,? BSP Governor Amando Tetangco Jr. said in a statement.

According to BSP preliminary data for October, loans for production continued to rise but at a slower rate of 19.2 percent than 22.4 percent in September. Loans to agriculture and forestry grew 44.2 percent, to wholesale and retail trade 28.9 percent, real estate, renting and business services 25.1 percent, and transportation, storage and communication 81.6 percent.

Decreases were recorded in loans to financial intermediation (-35.1 percent), mining and quarrying sector (-38.7 percent), and fishing (-42.7 percent).

Growth in consumption loans decelerated to 21.5 percent in October from 23.4 percent in September, with all types of consumer loans showing slowdowns as compared with their expansion in September. Credit card receivables grew 24.9 percent, down slightly from 26.3 percent; auto loans rose 11.6 percent, from 12.2 percent; and other types of loans rose 23.6 percent, from 29.6 percent.

Meanwhile, the money supply broadly available for consumer, business and government spending grew at a slightly slower pace in October than in September. The year-on-year growth in domestic liquidity, or m3, decelerated to 13.1 percent from 13.5 percent, mainly because of a decrease in net foreign assets of the banking system.

On a monthly basis, seasonally adjusted domestic liquidity rose by 1.6 percent from 2.8 percent in the previous month.

One of the key indicators closely watched in managing inflation rate, domestic liquidity is the broadest measure used to estimate the entire supply of money in an economy. It includes cash in circulation, demand deposits, money market funds and short-term securities buyback agreements. Doris C. Dumlao; edited by INQUIRER.net