The growth in loans disbursed by big banks slowed to 13.4 percent in December from the revised 13.9 percent in November amid the series of aggressive rate hikes delivered by the Bangko Sentral ng Pilipinas (BSP).
Preliminary data released by the central bank show outstanding loans of universal and commercial banks, net of reverse repurchase (RRP) placements with the BSP, reached P10.9 trillion at end-2022 from P9.61 trillion in 2021.
On a month-on-month seasonally-adjusted basis, outstanding universal and commercial bank loans, net of RRPs, also slowed by 0.04 percent.
Outstanding loans to residents, net of RRPs, rose by 13.2 percent in December after the revised 13.6-percent increase in the previous month.
Outstanding loans for production activities expanded by 12.1 percent in December from the revised 12.6-percent rise in November driven largely by the credit growth of key industries such as real estate activities with 13.1 percent); manufacturing with 14.9 percent; electricity, gas, steam and air-conditioning supply with 14.4 percent; wholesale and retail trade, repair of motor vehicles and motorcycles with 12.7 percent); and information and communication with 21.6 percent.
The BSP also reported a faster 24.8 percent rise in consumer loans in December from the revised 24.2 percent in November, reflecting the faster year-on-year growth in motor vehicle loans.
“The sustained growth in credit activity and ample liquidity will continue to support the recovery of economic activity and domestic demand. Looking ahead, the BSP will ensure that liquidity and credit conditions are in line with its primary mandate of promoting price and financial stability,” the central bank said in a statement.
To tame inflation, the BSP Monetary Board raised interest rates by 350 basis points, bringing the overnight reverse repurchase rate to a 14-year high of 5.50 percent from an all-time low of two percent.
