Bank Lending Expands by 11.8% in July
Outstanding loans from universal and commercial banks (U/KBs) to businesses and individual consumers rose in July.
Preliminary data show that loans from U/KBs[1] expanded at a slower rate of 11.8 percent year-on-year in July from 12.1 percent in June.
After adjusting for seasonal fluctuations, outstanding U/KB loans grew by 0.7 percent month-on-month in July.
Outstanding loans to residents increased by 12.4 percent in July from 12.6 percent in June. Outstanding loans to non-residents[2] decreased further by 8.1 percent in July from a 6.4-percent decline in the previous month.
Loans meant to fund business activities expanded by a slower pace of 10.8 percent in July from 11.1 percent in June. Lending increased for the following key industries: real estate activities (10.7 percent); electricity, gas, steam, and air-conditioning supply (30.3 percent); wholesale and retail trade, repair of motor vehicles and motorcycles (8.5 percent); financial and insurance activities (13.1 percent); and information and communication (8.5 percent).
Consumer loans to residents—which include credit card, motor vehicle, and general-purpose salary loans—grew by 23.6 percent from 24.0 percent.
The BSP monitors bank loans because they are a key transmission channel of monetary policy. Looking ahead, the BSP will ensure that domestic liquidity and bank lending conditions remain aligned with its price and financial stability objectives.
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