MANILA— Bank lending and domestic liquidity continued to grow in October, reflecting steady demand from businesses and consumers, preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed.
Outstanding loans of universal and commercial banks (U/KBs) rose 10.3 percent year-on-year in October, slightly slower than the 10.5 percent increase in September. Seasonally adjusted, U/KB lending grew 0.6 percent from the previous month.
Lending to residents expanded by 10.9 percent, while loans to nonresidents fell 11.1 percent after a 2.9 percent drop in September. Credit to businesses grew 9.1 percent as banks continued to support key industries such as real estate (9.9 percent), electricity and energy supply (24.8 percent), wholesale and retail trade (11.7 percent), financial and insurance (8.5 percent), information and communication (8.2 percent), and transportation and storage (13.0 percent).
Consumer loans to residents, including credit card, motor vehicle, and salary loans, grew 23.1 percent, slightly slower than September’s 23.5 percent.
The BSP said bank lending remains a key channel for monetary policy transmission and vowed to keep liquidity and credit conditions aligned with its price and financial stability goals.
Domestic liquidity, or M3, also expanded during the month. Money supply grew 8.3 percent year-on-year to about ₱19.1 trillion in October, faster than the revised 7.6 percent growth in September. On a seasonally adjusted basis, M3 rose 1.0 percent month-on-month.
Claims on the domestic sector increased 10.5 percent, buoyed by stronger lending to both private firms and households. Claims on the private sector alone climbed 11.0 percent, up from 10.7 percent in September, reflecting the continued pickup in bank credit. Net claims on the central government grew 10.0 percent as government borrowing increased.
Net foreign assets (NFAs) in peso terms rose 2.1 percent in October, though the BSP’s own NFAs slipped 0.4 percent. Banks’ NFAs improved as their foreign currency-denominated bills payable declined.
The central bank said it will continue to manage liquidity to ensure consistency with its inflation and financial stability mandates. PR