BANK LENDING grew at an even faster pace in July, helped up by huge liquidity in the system, regulators said.

Total loan portfolio of commercial banks amounted to P2.16 trillion as of end-July, rising by 11.7 percent from P1.93 trillion during the same period last year, the Bangko Sentral ng Pilipinas reported yesterday.

July?s credit growth was faster than the 9.6 percent registered in June and the 8.1 percent recorded in May.

?Robust growth in bank lending, especially to productive activities, is in line with the ongoing overall expansion in domestic economic activity,? said Amando Tetangco Jr., governor of the central bank.

As the Philippine economy starts to recover from last year?s downturn, banks are now lending more to individuals and businesses. In turn, growth in credit will further prop up the economy, Tetangco said in a statement.

?Given strong demand and ample liquidity in the economy, bank lending will continue to rise,? he said.

More individuals availed of auto loans, housing loans, and personal loans, apart from credit card consumption, the central bank reported. Also, more corporate entities secured funds to fuel investments, expansion, and payment of liabilities.

Data showed that outstanding credit to individuals reached P179.6 billion, rising by 12.5 percent from P159.69 billion. On the other hand, outstanding loans to businesses amounted to P1.94 trillion as of end-July, rising by 12 percent from the 1.73 trillion reported last year.

Sectors that benefited from growth in corporate lending were manufacturing, real estate, utilities, wholesale and retail trade, construction, transportation and communication, and services.

Monetary officials said the rise in bank lending was aided by the low interest rate environment. They said the low lending rates of banks have encouraged individuals and businesses to borrow and pursue more consumption and investments.