BSP: Bank lending, money supply growth slow in December

Loans from universal and commercial banks grew 9.2 percent year-on-year in December, slower than 10.3 percent in November, based on preliminary data released Feb. 9, 2026, by the Bangko Sentral ng Pilipinas (BSP).

After adjusting for seasonal fluctuations, outstanding universal and commercial bank loans declined 2.0 percent month-on-month in December, the BSP said.

Outstanding loans to residents expanded 9.7 percent year-on-year in December from 10.7 percent in November, the BSP reported.

Outstanding loans to nonresidents declined 8.1 percent year-on-year in December, deeper than the 4.5 percent drop in the same period cited for comparison.

Loans meant to fund business activities grew 8.0 percent year-on-year in December, according to the BSP.

By key industry, lending growth included real estate activities (8.3 percent), electricity, gas, steam, and air-conditioning supply (26.8 percent), wholesale and retail trade and repair of motor vehicles and motorcycles (10.8 percent), and financial and insurance activities (3.9 percent).

Consumer loans to residents, including credit card, motor vehicle, and general-purpose salary loans, grew 21.4 percent year-on-year in December from 22.9 percent previously reported for comparison.

The BSP said it monitors bank loans because they are a key transmission channel of monetary policy.

The central bank added that it will ensure domestic liquidity and bank lending conditions remain consistent with its price and financial stability mandates.

In a separate Feb. 9, 2026 release, the BSP said domestic liquidity, or M3, grew 7.0 percent year-on-year to PHP 20.1 trillion in December, also based on preliminary data.

M3 growth in December was slower than the 7.6 percent increase in November, the BSP said.

After seasonal adjustment, M3 remained broadly stable from November, according to the central bank.

The BSP described M3 as a broad measure of money supply that includes currency in circulation, bank deposits, and other financial assets easily convertible to cash.

Claims on the domestic sector rose 10.1 percent year-on-year in December from 10.6 percent in November, the BSP reported.

Claims on the private sector alone grew 10.1 percent year-on-year in December from 11.1 percent in the previous month, as bank lending growth to nonfinancial private corporations and households slowed, the BSP said.

Net claims on the central government increased 10.8 percent year-on-year in December from 11.0 percent in the previous month, driven mainly by higher borrowings, according to the BSP.

Net foreign assets in peso terms rose 6.1 percent year-on-year in December from 4.4 percent in November, the BSP said.

The BSP added that net foreign assets of the central bank increased 5.3 percent, while net foreign assets of banks grew mainly on larger holdings of foreign currency-denominated debt securities.

The central bank said it will continue to ensure domestic liquidity conditions remain consistent with its price and financial stability objectives.