The Bangko Sentral ng Pilipinas (BSP) reported that both domestic liquidity (M3) and bank lending grew last November and in the first 11 months of 2023.

Preliminary data from the BSP showed that M3 grew by 7.0 percent year-on-year to about P16.8 trillion in November from 8.1 percent (revised) in October.

On a month-on-month seasonally-adjusted basis, M3 decreased by about 0.3 percent.

Domestic claims expanded by 9.6 percent year-on-year in November from 10.2 percent in the previous month.

Claims on the private sector grew by 8.2 percent in November from 7.6 percent in October with the sustained expansion in bank lending to non-financial private corporations and households.

Net claims on the central government rose by 17.2 percent in November from 19.1 percent in October due mainly to the decrease in deposits by the National Government with the BSP.

Net foreign assets (NFA) in peso terms increased by 3.2 percent year-on-year in November from 2.1 percent in October.

The BSP’s NFA grew by 5.1 percent in November after expanding by 4.7 percent in the previous month. Meanwhile, the NFA of banks contracted on account of higher bills payable.

Looking ahead, the BSP said it will continue to ensure that domestic liquidity conditions remain in line with the prevailing stance of monetary policy, consistent with its price and financial stability objectives.

Meanwhile, preliminary data indicated that outstanding loans of universal and commercial banks (U/KBs), net of reverse repurchase (RRP) placements with the BSP increased by 7.0 percent year-on-year in November from 7.1 percent in October.

On a month-on-month seasonally-adjusted basis, outstanding universal and commercial bank loans, net of RRPs, rose by 0.6 percent.

Likewise, outstanding loans to residents, net of RRPs, rose at a slightly slower pace of 7.4 percent in November from 7.5 percent in October, while outstanding loans to non-residents declined by 5.0 percent in October from a 5.1-percent decrease in October.

Outstanding loans for production activities went up by 5.7 percent in November from 5.9 percent in the previous month, mainly due to the growth in loans to major sectors including real estate activities (11.9 percent); electricity, gas, steam, and airconditioning supply (12.8 percent); and wholesale and retail trade, and repair of motor vehicles and motorcycles (9.6 percent).

Consumer loans to residents increased by 23.6 percent in November from 22.8 percent in October, driven by the faster increase in credit card loans, motor vehicle loans, and salary-based general purpose consumption loans.

The BSP said it will continue to ensure that liquidity and credit conditions remain consistent with its price and financial stability objectives.