Bank lending, domestic liquidity up anew in June

Bangko Sentral ng Pilipinas (File photo / Philippine Daily Inquirer)

MANILA – Bank lending of universal and commercial banks (U/KBs) sustained its growth while domestic liquidity grew at a slightly faster pace in June, the Bangko Sentral ng Pilipinas (BSP) said.

Preliminary data released by the BSP Wednesday showed that banks’ outstanding loans, excluding those placed in the central bank’s reverse repurchase facility, rose 10.1 percent, the same rate of increase recorded in May.

Outstanding loans issued by U/KBs amounted to P12.09 trillion in June from P12.07 trillion in May this year and P10.9 trillion a year ago.

READ: BSP: Bank lending growth surged to 14-month high in May

The BSP said outstanding loans to residents, net of RRPs, grew at a slightly slower rate of 10.1 percent from 10.2 percent in May.

Outstanding loans to non-residents, meanwhile, grew by 9.8 percent from 8.1 percent in May this year.

Loans for production activities went up by 8.3 percent from 8.4 percent mainly composed of loans to key industries such as real estate activities (12.3 percent); wholesale and retail trade, and repair of motor vehicles and motorcycles (9.3 percent); manufacturing (8.9 percent); transportation and storage (26.2 percent); and electricity, gas, steam, and airconditioning supply (5.7 percent).

Consumer loans to residents grew by 25 percent amid the rise in credit card loans.

Domestic liquidity expanded by 6.6 percent to P17.5 trillion from P17. 39 trillion in May.

The growth in domestic liquidity was slightly higher than the 6.5 percent expansion in May.

Domestic claims went up by 10.5 percent from 10.7 percent in the previous month.

READ: Bank lending in PH on ‘declining’ trend

Claims on the private sector grew by 11.7 percent from 11.6 percent in May with the continued expansion in bank lending to non-financial private corporations and households.

The BSP said net claims on the central government grew by 12.1 percent from 12.2 percent due to the sustained borrowings of the national government and the decline in its deposits with the BSP.

Net foreign assets (NFA) in peso terms rose by 8.3 percent in June from 4.9 percent in May.

The BSP’s NFA grew by 12.3 percent while the NFA of banks contracted on account of higher bills and bonds payable.

“The BSP will continue to ensure that domestic liquidity conditions remain consistent with the prevailing stance of monetary policy, in line with its price and financial stability objectives,” the BSP said.