Bank lending up 14% to P2.98T in August

Loans extended by universal and commercial banks in the country rose by 14 percent to P2.98 trillion as of the end of August from P2.62 trillion a year ago, according to the Bangko Sentral ng Pilipinas.

The rate of growth was, however, slower than the 16 percent reported in July.

“Bank lending activity is expected to remain robust, thereby providing support to domestic demand and real sector activity in the coming months,” the BSP said in a statement.

Data from the BSP showed that outstanding loans to individual borrowers accounted for P243.15 billion of the total, up by 15.8 percent from P210 billion in the same period last year.

Outstanding loans to enterprises accounted for the bulk of P2.72 trillion, up by 14.1 percent from P2.38 trillion a year ago.

The sectors that benefited the most from increased bank lending in August were wholesale and retail trade, real estate, manufacturing, financial intermediation, transportation and communications, and utilities.

The increase in the loans extended by banks led to a 6.2-percent growth in overall liquidity in the economy, measured in terms of M3, to P4.6 trillion. A broad measure of money, M3 includes currencies in circulation, savings and time deposits, demand deposits, money market funds and repurchase agreements.—Michelle V. Remo