Bank loans

December bank lending rose 4.6% amid favorable PH outlook

Bank lending grew at a faster pace in December due to higher credit demand amid an improving economic outlook, the Bangko Sentral ng Pilipinas said on Monday.

Preliminary data showed outstanding universal and commercial bank loans, net of reverse repurchase investments with the BSP, rose 4.6% year-on-year in December, faster than the 4.0% rise. in November.

“Credit activity continued to improve on a more favorable economic outlook for businesses and households amid the sustained rollout of COVID-19 vaccines and the easing of community restrictions during the month,” he said. said BSP in a statement.

It said that on a seasonally adjusted monthly basis, outstanding universal and commercial bank loans, net of RRPs, increased by 0.4%.

The outstanding balance of loans to residents, net of RRP, increased by 4.7% in December after 4.1% the previous month, in line with the acceleration in the growth of loans to production activities.

Outstanding loans to production activities increased by 5.8% in December against 5.4% in November due to the continued rise in loans to real estate activities (+9.1%); information and communication (27.3%); manufacturing (9.4%); financial and insurance activities (9.9%); and transportation and warehousing (9.1%).

Meanwhile, consumer loans to residents fell to a lower rate of 5.7% in December, from a 7.1% drop in November, amid a year-on-year rise in credit card loans. credit.

Outstanding loans to non-residents increased by 2.5% in December after 0.4% in November.

The BSP said it would continue to monitor credit dynamics to ensure its monetary policy settings remain appropriate amid signs of economic recovery, in line with its price and financial stability mandates.

Gross domestic product grew 5.6% in 2021 as the BSP kept benchmark interest rates unchanged at record highs.