Philippine bank lending showed robust growth in December, reaching its fastest pace since December 2022, while money supply growth remained stable. The Bangko Sentral ng Pilipinas (BSP) reported that outstanding loans of universal and commercial banks grew by 12.2 percent year-on-year, driven by sustained expansion in various sectors, including wholesale and retail trade, construction, and consumer loans.
Philippine bank lending showed robust growth in December, reaching its fastest pace since December 2022, while money supply growth remained stable. According to the Bangko Sentral ng Pilipinas ( BSP ), outstanding loans of universal and commercial banks, excluding reverse repurchase (RRP) placements with the BSP , surged by 12.2 percent year-on-year, up from 11.1 percent in November. This acceleration in lending was accompanied by steady domestic liquidity (M3) growth of 7.7 percent, reaching P18.
8 trillion. The BSP attributed the strong loan growth to sustained expansion in various sectors, including wholesale and retail trade, repair of motor vehicles and motorcycles, electricity, gas, steam and air-conditioning supply, manufacturing, financial and insurance activities, and construction. Notably, consumer loans to residents witnessed a significant increase, reaching 25.0 percent growth, driven by higher credit card loans, salary-based general purpose consumption loans, and motor vehicle loans. On the liquidity front, domestic claims eased to 10.4 percent in December from 10.8 percent in the previous month. Claims on the private sector expanded by 12.2 percent, propelled by continued lending to non-financial private corporations and households. Conversely, net claims on the central government slowed to 7.2 percent growth due to increased state borrowings. In peso terms, net foreign assets (NFA) expanded by 6.0 percent in December, down from 9.8 percent in November. The central bank's NFA position grew by 6.8 percent, while banks' NFA declined due to higher bills and bonds payable. The BSP reaffirmed its commitment to ensuring domestic liquidity conditions align with the prevailing monetary policy stance, supporting its price and financial stability objectives
BANK LENDING MONEY SUPPLY PHILIPPINE ECONOMY BSP INFLATION INTEREST RATES
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