Big banks’ outstanding loans grew by 9.4 percent year-on-year in March, higher than the growth in February of 8.6 percent, according to the Bangko Sentral ng Pilipinas (BSP). 

In a statement Friday, May 10, the BSP said this data is net of reverse repurchase (RRP) placements with the central bank.

The BSP also released Friday the domestic liquidity (money supply) or M3 growth for March, showing a 5.7 percent year-on-year growth amounting to P17.179 trillion. This was higher compared to M3 growth of 5.1 percent in February.

Based on preliminary data, on a month-on-month seasonally-adjusted basis, M3 increased by about 0.9 percent. As for bank lending, this also rose by 1.3 percent net of RRPs on a month-on-month seasonally-adjusted basis.

Meanwhile, outstanding loans to residents, net of RRPs, increased by 9.5 percent in March to P11.453 trillion while outstanding loans to non-residents went up by 9.1 percent to P342.339 billion.

During the period, outstanding loans for production activities rose by 7.7 percent to P10.129 trillion, of which loans for real estate activities increased by 11.5 percent to P2.429 trillion while electricity, gas, steam, and air-conditioning supply rose 10.1 percent to P1.301 trillion. Construction and manufacturing loans also increased by 18.3 percent and 4.9 percent to P507.262 billion and P1.233 trillion, respectively.

The BSP reported that consumer loans to residents increased by 25.4 percent to P1.324 trillion “driven by the increase in credit card, motor vehicle, and salary-based general purpose consumption loans.”

In March, credit card loans went up by 30 percent to P744.698 billion while motor vehicle loans and salary loans increased by 19.8 percent and 17.6 percent to P402.109 billion and P145.787 billion, respectively.

The BSP reiterated that it will “ensure that domestic liquidity and credit conditions remain in line with its price and financial stability objectives.”

The country’s domestic liquidity or money supply for the month of March registered an increase in domestic claims of 10.8 percent year-on-year, higher compared to the previous month’s 9.6 percent.

The BSP said claims on the private sector grew by 10.9 percent from 10.3 in February “with the sustained expansion in bank lending to non-financial private corporations and households.”

Net claims on the central government also expanded by 15 percent from 12 percent in February due in part to the decline in the deposits of the National Government with the BSP.

As for net foreign assets (NFA) in peso terms, this went up by five percent in March compared to 3.6 percent in February.

The BSP’s NFA grew by 6.2 percent while the NFA of banks contracted on account of higher bills payable, it said.