Bank lending posted double-digit growth in the first half of the year, a development that paralleled the country’s domestic liquidity expansion for the period.
The Bangko Sentral ng Pilipinas (BSP) reported that outstanding loans of commercial banks expanded by 14.5 percent in June, about the same rate of growth reported in May.
This was brought about by loans for production activities comprising more than 80 percent of the banks’ aggregate loan portfolio for the period.
In particular, loans for production activities grew by 14.5 percent in June from 14.1 percent in May.
“The expansion in production loans was driven primarily by increased lending to the following sectors: real-estate activities at 16.3 percent; electricity, gas, steam and air-conditioning supply at 28.9 percent; wholesale and retail trade, and repair of motor vehicles and motorcycles at 15.1 percent; manufacturing at 8.6 percent; and, financial and insurance activities at 14.4 percent,” the BSP reported.
“Bank lending to other sectors likewise expanded during the month,” the central bank said in a statement.
Meanwhile, loans for household consumption also grew in June, albeit at a slower rate than in May.
Loans for household consumption grew by 14.9 percent in June from 20.5 percent in May due to sustained growth in credit card loans, auto loans and salary loans.
Sustained loan growth mirrors the frenetic pace of economic activities going on around the country.
“The BSP will continue to ensure that domestic credit and liquidity conditions will keep pace with overall economic growth while remaining consistent with its price and financial stability objectives,” the central bank said.