Bank lending growth slowed in December, pointing to a more cautious flow of domestic liquidity to businesses and households. According to the Bangko Sentral ng Pilipinas (BSP), loans from universal and commercial banks rose by 9.2 percent year on year, down from 10.3 percent in November. On a seasonally adjusted basis, total outstanding loans fell by 2 percent month on month.
Loans to residents continued to grow but at a slower pace, increasing by 9.7 percent in December from 10.7 percent previously. In contrast, lending to non-residents contracted further, declining by 8.1 percent.
Credit to businesses expanded by 8.0 percent, with banks channeling more funds to real estate, utilities such as electricity and gas, wholesale and retail trade, and financial and insurance activities.
These gains suggest continued, though more measured, support for key economic sectors.
Household borrowing also remained strong, but growth eased slightly. Consumer loans—covering credit cards, car loans, and salary-based borrowing—rose by 21.4 percent, slower than the previous month’s pace.
The central bank tracks bank lending closely as it reflects how monetary policy feeds through to the real economy. Looking ahead, the BSP said they will manage liquidity and lending conditions to ensure they continue to support economic activity while safeguarding price and financial stability.
