Bank lending spending by 10.3% in November

Outstanding loans from universal and commercial banks (U/KBs) to businesses and individual consumers expanded in November.

Preliminary data show that loans from U/KBs[1] grew at a steady rate of 10.3 percent year-on-year in November.

After adjusting for seasonal fluctuations, outstanding U/KB loans expanded by 0.9 percent month-on-month in November.

Outstanding loans to residents[2] grew at a slower rate of 10.7 percent in November from 10.9 percent in October. Meanwhile, outstanding loans to non-residents[3] decreased by 4.5 percent after contracting by 11.1 percent in the previous month.

Loans meant to fund business activities rose by 9.0 percent in November. Lending increased for the following key industries: real estate activities (9.0 percent); electricity, gas, steam, and airconditioning supply (26.6 percent); wholesale and retail trade, repair of motor vehicles and motorcycles (11.6 percent); financial and insurance activities (3.5 percent); information and communication (7.0 percent), and transportation and storage (12.7 percent).

Consumer loans to residents, which include credit card, motor vehicle, and general-purpose salary loans, grew by 22.9 percent from 23.1 percent.

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

Looking ahead, the BSP will ensure that domestic liquidity and bank lending conditions remain aligned with its price and financial stability objectives. PR