Bank Lending Grows by 7.0 Percent, Year-on-Year, in December 2023

Preliminary data indicated that outstanding loans of universal and commercial banks (U/KBs), net of reverse repurchase (RRP) placements with the BSP, grew by 7.0 percent year-on-year in December 2023, the same rate of increase as in November 2023. On a month-on-month seasonally-adjusted basis, outstanding universal and commercial bank loans, net of RRPs, increased by 0.3 percent.

Meanwhile, outstanding loans to residents, net of RRPs, went up by 7.3 percent in December from 7.4 percent in the previous month, while outstanding loans to non-residents[1] decreased by 2.8 percent in December from a decline of 5.0 percent in November.

Outstanding loans for production activities rose by 5.5 percent in December from 5.7 percent in November, driven largely by the expansion in lending to key industries such as real estate activities (10.9 percent); wholesale and retail trade, and repair of motor vehicles and motorcycles (7.2 percent); and electricity, gas, steam, and airconditioning supply (6.2 percent).

Likewise, consumer loans to residents increased by 23.5 percent in December from 23.6 percent in November, due to the increase in credit card loans, motor vehicle loans and salary-based general purpose consumption loans.

Looking ahead, the BSP will ensure that liquidity and bank lending conditions remain in line with its price and financial stability objectives.

[1] Outstanding loans to non-residents include loans by UKB’s foreign currency deposit units (FCDUs) to non-residents.