Bank lending grows by 8.6 percent, year-on-year, in February 2024

Preliminary data indicated that outstanding loans of universal and commercial banks (U/KBs), net of reverse repurchase (RRP) placements with the BSP, expanded by 8.6 percent year-on-year in February from 7.8 percent in January.

On a month-on-month seasonally-adjusted basis, outstanding universal and commercial bank loans, net of RRPs, rose by 0.7 percent.

Meanwhile, outstanding loans to residents, net of RRPs, increased by 8.7 percent in February from 7.8 percent in the previous month, while outstanding loans to non-residents[1] expanded by 6.5 percent in February after growing by 9.8 percent in January.

Outstanding loans for production activities went up by 6.8 percent in February from 5.9 percent in the previous month, largely driven by the increase in lending to key sector such as real estate activities (11.6 percent); electricity, gas, steam, and airconditioning supply (11.2 percent); wholesale and retail trade, and repair of motor vehicles and motorcycles (7.1 percent); transportation and storage (21.1 percent); and manufacturing (5.9 percent).

Likewise, consumer loans to residents grew by 25.2 percent in February, the same rate as in January, on the sustained increase in credit card and motor vehicle loans.

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

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