Bank Lending Slows Down in August
Press Release
Preliminary data show that outstanding loans of universal and commercial banks, net of
reverse repurchase (RRP) placements with the BSP, grew at a slower rate of 10.5 percent in
August from 11.1 percent in July. On a month-on-month seasonally-adjusted basis, commercial
bank loans net of RRPs grew by 0.7 percent.
Loans for production activities—which comprised 87.4 percent of banks' aggregate
loan portfolio, net of RRPs—expanded at a slower pace of 9.0 percent in August from
9.8 percent in the previous month. The growth in production loans was driven primarily by
lending to the following sectors: real estate activities (17.7 percent); financial and insurance
activities (16.3 percent); electricity, gas, steam and air conditioning supply (11.2 percent),
construction (39.2 percent); and wholesale and retail trade, repair of motor vehicles and
motorcycle (3.7 percent).
Bank lending to other sectors also increased during the month, except those in
professional, scientific and technical activities (-38.9 percent) and other community, social and
personal activities (-35.9 percent).
Meanwhile, loans for household consumption grew by 25.4 percent in August from
23.0 percent in July, due to faster growth in motor vehicle, credit card, and salary-based
general purpose consumption loans during the month.
Going forward, the BSP will continue to ensure that the expansion in domestic credit
and liquidity remains consistent with the BSP's price and financial stability objectives.
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Topic: Bank Lending Data for August 2019 (Read 1300 times)