BSP: Bank loans grow 22%, sustain consumer, industrial spending

Bank loans to private businesses and consumers grew at its fastest this year —22.2 percent in October, according to the Bangko Sentral ng Pilipinas (BSP) — sustaining the production and purchasing power of industries and households with P2.63 trillion in financing.   “Loans for production activities — which comprised 83.3 percent of commercial banks’ total loan portfolio — grew by 23.1 percent in October from 22.9 percent a month earlier,” the BSP said on Tuesday.   “Robust credit growth should help buoy up the domestic economy in the midst of ongoing external headwinds,” the BSP also said.   The International Monetary Fund (IMF) mission that just concluded its review of the Philippine economy said consumers and industries will sustain their strong economic output well into 2012 and provide much of the fuel for a forecast 4.2 percent growth.   IMF mission chief Vivek Arora said the added boost next year will come from public spending because of more effective use of the national government’s budget, which will be P1.8 trillion.   Production loans expand   The manufacturing sector got loans worth P458.84 billion, which was 19 percent of the P2.41 trillion in loans to industries. Real estate developers and property managers were not far behind with P422.51 billion or 17.5 percent of all loans issued.   “The expansion in production loans was driven primarily by increased lending to manufacturing, which grew by 30.6 percent, and real estate, renting and business services at 26.1 percent,” the BSP said.   Consumer loans totaled P219.625 billion, of which P127.2 billion or 58 percent were credit card receivables. Auto loans amounted to P69.82 billion or 32 percent.   “Growth in consumer loans likewise accelerated to 20.2 percent from 17.9 percent in September, reflecting the rapid growth in lending across all types of household loans,” the BSP noted. — ELR/VS, GMA News