BSP: Bank Loans Up 9.2 Percent in December

Loans from universal and commercial banks (U/KBs)[1] grew at a slower rate of 9.2 percent year on year in December from 10.3 percent in November, preliminary data show.

Loans meant to fund business activities grew by 8.0 percent in December. (Photo: Bangko Sentral ng Pilipinas Facebook)

After adjusting for seasonal fluctuations, outstanding U/KB loans declined by 2.0 percent month on month in December.

Outstanding loans to residents[2] expanded by 9.7 percent in December from 10.7 percent in November, while outstanding loans to nonresidents[3] recorded a decline of 8.1 percent, deeper than the 4.5 percent drop in the same period.

Loans meant to fund business activities grew by 8.0 percent in December.

Lending increased for the following key industries: real estate activities (8.3 percent); electricity, gas, steam, and air-conditioning supply (26.8 percent); wholesale and retail trade, repair of motor vehicles and motorcycles (10.8 percent); and financial and insurance activities (3.9 percent).

Consumer loans to residents—which include credit card, motor vehicle, and general-purpose salary loans—grew by 21.4 percent, slower than the 22.9 percent previously.

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 consistent with its price and financial stability mandates.