Bank lending still at double-digit pace but slower in May — BSP

The country’s commercial banks lent out P2.86 billion last May—14.7 percent more than the P2.486 billion they did in the same month in 2011—but this pace was a few percentage points slower compared to April’s 19.2 percent growth.   Bangko Sentral ng Pilipinas (BSP) figures released Wednesday traced the deceleration to decreased activity on the production loans side, which account for more than four-fifths of the commercial banks’ loan portfolio.   “The continued growth in bank lending supports the favorable outlook for domestic demand amid tepid global economic conditions,” the BSP said in a news release.   Production lending grew in these sectors of the economy:  

• Wholesale and retail trade (by 50.6 percent);
• Construction (48.5 percent);
• Public administration and defense (41.9 percent);
• Financial intermediation  (35.7 percent);
• Transportation, storage, and communication (30.3 percent);
• Real estate, renting, and business services (22.3 percent);
• Manufacturing (21.2 percent);
• Electricity, gas, and water (10.9 percent); and
• Hotels and restaurants (11.5 percent).

  Lending to mining and quarrying fell by 30.0 percent while the agriculture, hunting, and forestry sector had a steeper plunge of 48.8 percent. "The growth of consumer loans also eased to 16.8 percent from 17.5 percent in the previous month due mainly to the slowdown in auto loans," the BSP noted. — ELR, GMA News