Car loans and credit cards remain the banks’ most popular products in latest data showing consumer loans having grown slightly above 25 percent in February this year.
According to the Bangko Sentral ng Pilipinas (BSP), consumer loans went up 25.2 percent in February to P1.305 trillion from only P1.286 trillion in January.
Of the aggregate, P737.93 billion were dispensed as credit card accommodations representing a 30.1 percent increase from January when such accommodations totaled only P728.96 billion.
Credit card loans also accounted for 6.4 percent of total consumer loans dispensed during the month and just a notch higher than in January when this accounted for 6.3 percent.
Motor vehicle loans, the next biggest accommodation, totaled P394.40 billion in February, up 19.1 percent from January but unchanged as percent of total loans outstanding at 3.4 percent.
General purpose consumption loans grew 16 percent in February to P1141.87 billion from only P138.41 billion January even as other loans climbed 39.4 percent to P31.58 billion from P30.94 billion.
Loans are impacted by such considerations as cost, in the form of interest charges, availability or access to the service and also by inflation which at times act as a tax and therefore a disincentive for households and businesses.
The BSP noted that consumer loans in February were unchanged from a month earlier, indicating in this instance sustained increase in credit card and motor vehicle loans as overall liquidity in the financial system remain appropriate for the country’s continued economic expansion.
The BSP commits to ensure that liquidity levels in the financial system and bank lending activities remain consistent with its price and financial stability goals.
