MANILA, Philippines - Bank lending grew at a steady pace in July, indicating sustained demand for loans from both businesses and households, the Bangko Sentral ng Pilipinas said over the weekend.
Lending by universal and commercial banks, net of bank placements in the BSP, went up 12.3 percent to P3.34 trillion in July from P2.98 trillion in the same month last year.
The growth level was the same as the expansion seen in June, the central bank noted.
Along with placements with the BSP, lending expanded 11.7 percent to P3.60 trillion from P3.23 trillion last year. This growth level was slower than the 13 percent recorded in June.
“The continued expansion of bank lending is consistent with the results of the latest Senior Bank Loan Officers’ Survey which indicated robust loan demand from both businesses and households in Q3 (third quarter) 2013,†the BSP said.
Loans extended for production activities, which made up more than four-fifths of the entire credit portfolio, increased 11 percent to P3.02 trillion in July from P2.72 trillion last year.
The growth, however, was slower than the 12.2 percent expansion seen in June.
Loans for production activities were mostly extended for the real estate sector (P614.47 billion); manufacturing (P543.73 billion); wholesale and retail trade (P474.63 billion); electricity, gas and water (P331.92 billion); and financial intermediation (P281.86 billion).
Consumer loans, meanwhile, jumped 12.3 percent to P269.08 billion in July from P239.68 billion a year ago.
The growth was the same as the rise recorded in June, central bank data showed.
Credit card loans expanded 9.9 percent to P149.51 billion in July, while auto loans climbed 16.5 percent to P90.44 billion. Other consumer loans increased 12 percent to P29.13 billion.
The BSP said it would continue to be watchful of credit growth in line with its mandate of ensuring the stability of domestic prices.
“Going forward, the BSP will closely monitor liquidity and credit conditions to ensure that these continue to be supportive of the growth momentum of the economy while remaining consistent with the BSP’s price and financial stability objectives,†the central bank said.