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Business

Money supply grows to P7.7 T

Kathleen A. Martin - The Philippine Star

MANILA, Philippines - Domestic liquidity growth eased in June as the expansion in bank lending remained at the same level from the previous month, the Bangko Sentral ng Pilipinas (BSP) reported yesterday.

M3 – the broadest measure of domestic liquidity – climbed nine percent to P7.74 trillion in June from P7.1 trillion in the same month last year. The June growth performance, however, was slower than the 9.3 percent expansion recorded in May.

 “The sustained expansion in domestic liquidity during the month indicates that liquidity remains sufficient to support the economy’s growth requirements,” the BSP said.

 “Going forward, the BSP will continue to keep a close eye on monetary dynamics to ensure that liquidity in the financial system remains consistent with maintaining price and financial stability,” it said.

Lending by universal and commercial banks less their placements with the BSP rose 14.5 percent to P4.6 trillion in June from P4.02 trillion in the same period last year.

Together with placements with the central bank, lending increased 14.2 percent to P4.89 trillion from P4.28 trillion, the BSP said.

The bulk, or 89.3 percent, of loans were used for economic activities, while 7.8 percent went to household consumption.

Borrowings for production activities were mainly used for real estate (P785.47 billion), manufacturing (P709.57 billion), wholesale retail and trade (P657.37 billion), electricity, gas and water (P476.56 billion), and financial and insurance (P394.76 billion).

Looking at consumer loans, credit card loans increased six percent to P165.78 billion, while borrowings to finance cars and vehicles surged 28 percent to P130.95 billion.

Salary loans during the month also climbed 46 percent to P34.98 billion, while other household loans fell nine percent to P25.2 billion.

ACIRC

BANGKO SENTRAL

BILLION

BSP

DOMESTIC

LIQUIDITY

LOANS

MONTH

PERCENT

PILIPINAS

TRILLION

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