Bank lending up 12% in July

Outstanding loans of local universal and commercial banks posted a double-digit increase in July, data released by the Bangko Sentral ng Pilipinas (BSP) on Wednesday showed.

Total loans outstanding to residents and non-residents for the month, net of reverse repurchase (RRP) placements, jumped to P10.213 trillion.

This is 12.0% higher than the P9.118 trillion in July 2021 and is higher than the P10.193 trillion in the previous month.

Outstanding loans to residents net of RRPs increased by 11.9% to P9.917 trillion from P8.860 trillion, while outstanding loans to non-residents jumped by 14.6% to P296.295 billion from P258.505 billion.

Loans for production activities increased by 11.6%, on the back of higher lending for real estate activities, manufacturing, information and communication, wholesale and retail trade, and repair of motor vehicles and motorcycles.

Consumer loans expanded by 14.7%, driven by higher credit loans, motor vehicle loans, and salary-based general-purpose consumption loans.

"The sustained growth in bank lending and liquidity will support the recovery of economic activity and domestic demand," the BSP said.

"Looking ahead, the BSP will continue to ensure that liquidity and credit dynamics remain in line with the BSP’s price and financial stability objectives," it added. —VBL, GMA News