Bank lending growth continued to moderate in April, mirroring a deceleration in domestic liquidity, according to the Bangko Sentral ng Pilipinas (BSP), which reaffirmed its commitment to maintaining monetary conditions aligned with price and financial stability objectives.
Preliminary data showed that outstanding loans of universal and commercial banks (net of BSP’s reverse repurchase placements) rose by 11.2 percent year-on-year in April, easing from 11.8 percent in March. On a monthly seasonally adjusted basis, lending inched up by 0.3 percent. Lending to residents grew by 11.9 percent, slightly down from 12.4 percent, while loans to non-residents contracted further by 10 percent.
Loan growth for production activities also slowed to 10.3 percent from 10.8 percent, due to weaker expansion in key sectors including real estate, trade, manufacturing, and finance. In contrast, consumer loans to residents accelerated slightly to 24 percent, largely driven by robust credit card usage.
Meanwhile, domestic liquidity (M3) rose by 5.8 percent year-on-year in April to ₱18.2 trillion, also moderating from 6.2 percent in March. Seasonally adjusted, M3 increased just 0.1 percent month-on-month. Domestic claims grew 10.9 percent annually, supported by continued lending to the private sector and higher government borrowing.
The BSP said that it will ensure liquidity and credit conditions remain consistent with its monetary policy stance, as it monitors developments to support sustained economic growth while safeguarding price and financial stability.
