BSP: January bank lending grows 11% to P2.31T

Bank lending grew at a faster pace in January, a development monetary authorities attributed to strong demand for loans given rising consumption and investments. Bangko Sentral ng Pilipinas (BSP) documents showed that outstanding loans from universal and commercial banks amounted to P2.31 trillion by the end of January, up 11 percent from the P2.09 trillion recorded in the same period last year. “The continued growth in bank lending largely reflects the buoyancy of domestic demand and improving prospects for the economy," the BSP said in a statement. The Bangko Sentral said loans for production activities and consumer loans continued to rise in January. The growth of production loans was driven largely by increased lending to manufacturing, it said. The central bank believes that bank lending will continue to post strong growth as more companies borrow more to bankroll their expansion programs. The country’s strong economic growth last year allows more companies to expand their operations and hire more workers in the Philippines this year, said Rosabel Guerrero, BSP’s Department of Economic Statistics director. Monetary authorities pointed out that it will continue to “ensure that liquidity and credit conditions remain consistent with the BSP’s price stability object," the central bank statement said. — JE, GMA News