Outstanding loans of universal and commercial banks in the Philippines increased at a slower rate of 10.4 percent in January to P10.7 trillion from P9.7 trillion in the same month of 2022 as interest rates continued to rise.
This was slower than the 13.7 percent growth recorded last December but faster than the 8.4 percent increase in January 2022.
Over the nine months up to January, the Monetary Board has raised its key policy rate by a total of 3.5 percentage points to 5.5 percent from a record low of 2 percent that was prompted by the COVID-19 pandemic.
Preliminary data at the Bangko Sentral ng Pilipinas (BSP) show that outstanding loans from the country’s biggest banks decreased in January by P226 billion from P10.9 trillion in the previous month.
Outstanding loans to Philippine residents went up by 10.2 percent in January following a 13.5-percent increase in December.
Of this, loans to businesses grew slower at 9.2 percent in January from 12.4 percent in December as did loans to consumers 20.3 percent from 25.1 percent.
“Brisk credit growth and adequate liquidity will continue to sustain the momentum of economic growth,” the BSP said in a statement.