Bank lending eases to 11.2% in August, propped by household demand
MANILA, Philippines — Bank lending slowed to 11.2% year-on-year in August, easing from 11.8% in July, the Bangko Sentral ng Pilipinas (BSP) reported Thursday, October 2.
Despite the marginal slowdown, lending activity remained firm, rising 0.4% month-on-month after seasonal adjustments.
Business loans. Lending for business activities expanded by 9.9% in August, down from 10.8% the previous month.
Growth was supported by financing for the electricity, gas and steam supply sector, which surged 28.1%, and real estate activities, which grew 11.0%.
Consumer loans. Loans to residents for household use—including credit cards, motor vehicles and general-purpose salary loans—accelerated by 23.9%, up from 23.6% in July.
Resident vs. non-resident lending. Total loans to Philippine residents rose 11.6% in August, slower than July’s 12.4%.
Outstanding loans to non-residents contracted 5.9%, an improvement from the 8.1% decline a month earlier.
The BSP said consumer lending remained a key driver of growth, even as lending for business activity expanded at a slower pace.
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