MANILA, Philippines (Xinhua) - The Philippines' bank lending growth has slowed down while the local liquidity growth has slightly recovered, the Central Bank said today.
Based on the data, lending by universal and commercial banks jumped up 16.8 percent to $4.41 trillion in December, slower than the 20.1 percent expansion in November. This is the slowest pace since the rate hit 16.4 percent in December 2013.
Together with placements with the Central Bank, lending rose 15.3 percent to $4.67 trillion in December, also a deceleration from the 19 percent of the month prior.
"The sustained and broad-based expansion in bank lending has continued to underpin the positive growth momentum of the domestic economy," said Central Bank Governor Amando M. Tetangco Jr.
Tetangco said the slower credit growth may be owed to effects of recent stricter regulations implemented but stressed lending will continue to support the economy.
"Going forward, the Central Bank will ensure that credit and liquidity conditions remain supportive of overall economic growth in a manner consistent with our price and financial stability objectives," Tetangco said.
Meanwhile, the Central Bank governor said domestic liquidity continued to grow at a moderate pace during the month "due in part to the increase in placements of trust entities" in their special deposit account facility relative which is similar to the previous year.