Lending by universal and commercial banks (U/KBs) continued to grow in September, alongside faster domestic liquidity expansion, according to preliminary data from the Bangko Sentral ng Pilipinas (BSP).
Outstanding loans of U/KBs rose by 10.5 percent year-on-year in September, easing slightly from 11.2 percent in August. On a seasonally adjusted basis, lending increased 0.3 percent month-on-month.
Credit to residents expanded by 10.9 percent, while loans to non-residents posted a slower decline of 2.9 percent from a 5.9-percent fall in August.
Lending to businesses grew by 9.1 percent, supporting key sectors such as real estate (9.2 percent), electricity and gas (27.1 percent), wholesale and retail trade (9.1 percent), finance and insurance (8.8 percent), information and communication (8.6 percent), and transport and storage (15.4 percent). Consumer loans rose 23.5 percent, led by credit card, auto, and salary loans.
Meanwhile, domestic liquidity (M3)—the broad measure of money in circulation—expanded 7.3 percent year-on-yearto ₱18.9 trillion, up from 6.6 percent in August. Adjusted for seasonality, M3 grew 1.2 percent month-on-month.
The BSP said the faster liquidity growth was driven by increased claims on the domestic sector, which rose 10.3 percent, reflecting higher lending to private firms and households and greater central government borrowing. Net foreign assets grew 3.3 percent, with banks’ holdings of foreign-currency assets increasing.
The BSP emphasized that both bank lending and liquidity expansion continue to support overall economic activity. The central bank reiterated it will ensure that liquidity and credit conditions remain consistent with its price and financial stability objectives amid evolving domestic and global conditions.
