The various banks extended loans 7.4 percent higher in November last year aggregating P11.1 trillion, the Bangko Sentral ng Pilipinas (BSP) said, citing preliminary data.
These were loans excluding funds the BSP borrowed from the industry, called reverse repurchase placements or RRPs, to help manage liquidity levels in the system.
This was marginally more than loans totaling P10.985 trillion deployed the previous October.
This also developed as domestic liquidity or M3 grew by seven percent to P16.8 trillion in November from 8.1 percent (revised) in October. On a month-on-month seasonally-adjusted basis, M3 decreased by about 0.3 percent.
The BSP keeps a good eye on M3 levels as it is loath to see too much money chasing after too few goods, which is the perfect formula for inflation.
Looking froward, the BSP committed to ensure that domestic liquidity conditions remain consistent with the prevailing stance of monetary policy and in keeping with its price and financial stability objectives.
According to the BSP, production loans that help drive economic expansion grew 5.7 percent in annual basis to P9.85 trillion in November from last year’s P204.76 trillion. These loan primarily benefited the real estate, wholesale and retail trade, manufacturing, the financial and insurance sector and the water supply, sewerage and waste management sector.
Consumption loans, on the other hand, accelerated 23.4 percent to P1.25 trillion in November from only P1.01 trillion a year earlier and only P1.21 trillion the previous October.
