LOANS from the country’s big banks grew at a slower pace in April, according to data from the Bangko Sentral ng Pilipinas (BSP).
Bank lending by universal and commercial banks (excluding placements with the central bank) rose by 11.2 percent in April compared to the same month last year, down slightly from 11.8 percent growth in March. On a monthly basis, lending increased by 0.3 percent, after adjusting for seasonal changes.
Loans to Philippine residents also grew more slowly, rising by 11.9 percent in April from 12.4 percent in March. Meanwhile, loans to foreign borrowers continued to drop, falling by 10 percent in April following a 5.6 percent decline in March.
Loans used for business and production activities grew by 10.3 percent, easing from 10.8 percent in the previous month. Slower lending was seen in major sectors such as:
Real estate (up 8.9 percent)
Wholesale and retail trade, including motor vehicle repair (up 9.9 percent)
Manufacturing (up 0.6 percent)
Finance and insurance (up 7.5 percent)
Information and communication (up 7.7 percent)
Transport and storage (up 14.9 percent)
On the other hand, personal or consumer loans continued to rise strongly, growing by 24 percent in April from 23.9 percent in March, driven mainly by more borrowing through credit cards.
The BSP said it will continue to monitor lending conditions to make sure they support the economy while keeping prices and the financial system stable. / KOC