Bank loan growth accelerated in August
The increase of loans extended by the country’s large banks picked up pace slightly to 12.2 percent year-on-year in August from 12 percent in July amid double digit-growth in lending to both businesses and households, according to the Bangko Sentral ng Pilipinas (BSP).
Preliminary data show that compared to lending in July, the volume of loans net of short-term loans to the BSP increased by 1.3 percent in August, faster than the 0.6 percent month-on-month growth recorded a month earlier.
Philippine residents borrowed 12.1 percent more in August, up slightly from 11.9 percent in July.
For businesses alone, growth was recorded at 11.5 percent, slower than 11.6 percent in July. The biggest increases were seen in loans extended to real estate activities; manufacturing; information and communication technology—all in two-digit levels.
The growth of consumer loans to residents—for credit card transactions, motor vehicle purchases and for salary-based general purposes — revved up further to 18.3 percent in August from 15 percent in July.
Also, the growth of outstanding loans to non-residents regained momentum to 16.3 percent in August from 14.6 percent in July.
“The sustained expansion in credit activity and ample liquidity will continue to support the recovery of economic activity and domestic demand,” the BSP said.
