Preliminary data show that outstanding loans of universal and commercial banks (U/KBs), net of reverse repurchase (RRP) placements with the Bangko Sentral ng Pilipinas (BSP), grew at a faster pace of 12.0 percent year-on-year in June relative to the 10.7-percent uptick in May. On a month-on-month seasonally-adjusted basis, outstanding universal and commercial bank loans, net of RRPs, expanded by 2.3 percent.
Outstanding loans to residents, net of RRPs, increased by 11.9 percent in June from 10.6 percent in the previous month. Outstanding loans for production activities grew by 12.0 percent in June from 10.8 percent in May due mainly to the rise in credit for real estate activities (18.1 percent); manufacturing (17.5 percent); information and communication (29.7 percent); and wholesale and retail trade, repair of motor vehicles and motorcycles (8.0 percent).
Likewise, growth in consumer loans to residents accelerated to 10.6 percent in June from 8.5 percent in May, driven by the year-on-year rise in credit card loans and salary-based general purpose consumption loans. At the same time, outstanding loans to non-residents[1] rose at a faster rate of 16.3 percent in June from 12.5 percent in the previous month.
The sustained growth in credit will support the momentum of economic recovery amid the ongoing withdrawal of monetary accommodation. Going forward, the BSP will continue to ensure that liquidity and credit dynamics remain consistent with the BSP’s price and financial stability objectives.
[1] Outstanding loans to non-residents include loans by UKB’s foreign currency deposit units (FCDUs) to non-residents.
