Bank lending by universal and commercial banks (U/KBs) continued to grow in July, albeit at a slightly slower pace, with year-on-year expansion at 11.8 percent, down from 12.1 percent in June, according to preliminary data from the Bangko Sentral ng Pilipinas (BSP).
On a seasonally adjusted month-on-month basis, outstanding loans rose by 0.7 percent. Lending to residents grew by 12.4 percent, while loans to non-residents contracted further by 8.1 percent, deepening the 6.4 percent decline recorded the previous month.
Business loans increased by 10.8 percent, slower than June’s 11.1 percent, though certain sectors—such as electricity and gas supply (30.3 percent), financial and insurance activities (13.1 percent), and real estate (10.7 percent)—continued to post solid gains. Consumer lending, including credit card, auto, and salary loans, expanded by 23.6 percent, easing slightly from 24 percent in June.
The BSP emphasized that bank lending remains a key monetary policy transmission channel and reaffirmed its commitment to ensuring that credit and liquidity conditions remain consistent with its inflation and financial stability goals.
“Liquidity, I think, is more than where I think it should be. There’s too much, but we’re tryin to (soak in some of them) somewhat differently. Our liquidity operations for now are concentrated on the short end,” BSP governor Eli Remolona Jr. quipped recently.
