BANK lending growth has declined to 0.3 percent in November from 1.8 percent (revised) in October, the Bangko Sentral ng Pilipinas (BSP) said.
“Bank lending growth waned during the month as the Covid-19 crisis continued to dampen consumer spending and business activity,” the central bank said in a statement.
On a month-on-month seasonally-adjusted basis, outstanding universal and commercial bank loans, net of reverse repurchase placements (RRPs), contracted by 0.3 percent.
Loans for production activities, net of RRPs, grew by 0.5 percent in November from two percent in October as outstanding loans to key industries declined further, particularly wholesale and retail trade and repair of motor vehicles and motorcycles (-6.0 percent) and manufacturing (-4.2 percent).
Meanwhile, the following sectors contributed to the overall increase in production loans: real estate activities (5.2 percent); electricity, gas, steam and air conditioning supply (2.7 percent); human health and social work activities (45.3 percent); transportation and storage (8.1 percent); and information and communication (6.5 percent).
Similarly, consumer loans grew at a lower rate of 7.1 percent in November from 7.9 percent (revised) in October due largely to the slowdown in credit card loans and the continued contraction in motor vehicle loans during the month.
“Understandably, there is a drop in loan availments compared from the pre-Covid times. ... We can really feel a slowdown on consumer financing,” said Cebu Bankers Club president Romeo Comabig. “There is a slowdown on economic activities due to the coronavirus pandemic.” / JOB WITH PR