Bank lending grows 10.3 percent in November

Outstanding loans from universal and commercial banks to businesses and individual consumers expanded in November, reflecting sustained credit growth in the Philippine banking system, preliminary data from the Bangko Sentral ng Pilipinas showed.

Loans from universal and commercial banks grew by 10.3 percent year on year in November, matching the pace seen in recent months and indicating steady lending activity despite a still-evolving interest rate environment.

On a seasonally adjusted basis, outstanding bank loans increased by 0.9 percent month on month in November, pointing to continued loan demand during the period.

Outstanding loans to residents expanded at a slower rate of 10.7 percent in November, easing from 10.9 percent in October and suggesting a slight moderation in domestic credit growth.

In contrast, outstanding loans to nonresidents declined by 4.5 percent in November after contracting by 11.1 percent in the previous month, reflecting weaker cross-border lending by banks’ foreign currency deposit units.

Loans extended to fund business activities rose by 9.0 percent in November, underscoring continued support for productive sectors of the economy.

Among major industries, lending increased for real estate activities by 9.0 percent and for electricity, gas, steam, and air-conditioning supply by 26.6 percent, indicating strong credit growth in property-related and energy sectors.

Credit growth was also recorded in wholesale and retail trade, including repair of motor vehicles and motorcycles, which expanded by 11.6 percent, as well as in transportation and storage at 12.7 percent.

Loans to the financial and insurance sector grew by 3.5 percent, while lending to information and communication activities rose by 7.0 percent, reflecting continued but uneven expansion across services industries.

Consumer loans to residents, which include credit card, motor vehicle, and general-purpose salary loans, grew by 22.9 percent in November, slightly slower than the 23.1 percent increase recorded in October.

The central bank monitors bank lending closely because it is a key transmission channel of monetary policy, influencing spending, investment, and overall economic activity.

Looking ahead, the Bangko Sentral ng Pilipinas said it will ensure that domestic liquidity and bank lending conditions remain aligned with its objectives of maintaining price stability and safeguarding financial system stability.