Lending activity by universal and commercial banks (U/KBs) continued its upward trajectory in June, supporting stronger domestic demand and economic momentum, according to preliminary data from the Bangko Sentral ng Pilipinas (BSP).
Outstanding U/KB loans rose by 12.1 percent year-on-year in June, accelerating from 11.3 percent in May. On a seasonally adjusted basis, loan growth stood at 1.2 percent month-on-month. This sustained credit expansion reflects increasing financing needs across both households and key industries.
Business lending climbed by 11.1 percent, from 10.2 percent the previous month, fueled by strong credit flows to sectors such as:
Electricity, gas, steam & air conditioning (+29.2 percent)
Transportation & storage (+15.9 percent)
Financial & insurance activities (+12.0 percent)
Real estate activities (+9.9 percent)
Meanwhile, consumer loans to residents surged by 24 percent, driven by robust demand for credit cards, auto loans, and salary-based credit.
Outstanding loans to residents increased by 12.6 percent, while those to non-residents continued to contract, down 6.4 percent in June after a 6.6 percent drop in May.
The BSP considers bank lending a key channel for monetary policy transmission and highlighted its commitment to ensuring credit conditions remain aligned with its price and financial stability goals.
In parallel, domestic liquidity (M3)—a broad measure of money circulating in the financial system—grew by 6.3 percent year-on-year to approximately ₱18.6 trillion, faster than the 5.5 percent increase in May. Seasonally adjusted, M3 rose 1.2 percent month-on-month.
Growth in money supply was supported by a 10.7 percent increase in claims on the domestic sector, including an 11.3 percent rise in credit to the private sector, reflecting sustained household and corporate borrowing. However, net foreign assets (NFA) declined by 1.7 percent, influenced by the peso’s appreciation and adjustments in the BSP’s holdings.
The BSP reiterated its intent to manage liquidity conditions prudently in line with its monetary policy stance, ensuring that credit growth continues to support economic recovery without compromising price or financial stability.
