PRELIMINARY data from the Bangko Sentral ng Pilipinas (BSP) shows that outstanding loans of commercial banks, net of reverse repurchase (RRP) placements with the BSP, grew by 19.7 percent in March from 18.1 percent in February.
Likewise, bank lending inclusive of RRPs expanded by 18.4 percent in March from 17.5 percent in the previous month.
On a month-on-month seasonally-adjusted basis, commercial bank lending for loans net of RRPs and loans inclusive of RRPs increased by 1.7 percent and 0.9 percent, respectively.
Loans for production activities—which comprised about 88.6 percent of banks’ aggregate loan portfolio, net of RRP — grew by 18.5 percent in March from 17.6 percent in February.
The growth in production loans was driven primarily by increased lending to the following sectors: real estate activities (18.8 percent); manufacturing (16.4 percent); wholesale and retail trade, repair of motor vehicles and motorcycles (14.3 percent); electricity, gas, steam and airconditioning supply (15.4 percent); financial and insurance activities (17.3 percent); and information and communication (40.2 percent).
Bank lending to other sectors also increased during the month except in the case of public administration and defense, compulsory social security (-10.0 percent) and water supply, sewerage, waste management and remediation activities (-0.6 percent).
Loans for household consumption increased by 23.6 percent in March from 24.6 percent in February due to the growth across all types of loans for household consumption namely, credit card loans, auto loans, salary-based general-purpose loans, and other household loans. BSP