Big banks’ outstanding loans grew by 9.6 percent year-on-year in April, higher than the 9.4 percent recorded in March, the Bangko Sentral ng Pilipinas (BSP) reported Friday, May 31.
In peso value, bank lending amounted to P11.914 trillion in April, net of reverse repurchase (RRP) placements with the BSP. With RRP, gross value totaled P12.261 trillion, the BSP reported Friday, May 31.
RRP, as defined by the BSP, refers to a monetary policy instrument where the central bank sells government securities to participating entities in the RRP facility with a commitment to buy it back at a specified future date and at a predetermined rate. RRP payments have a "contractionary effect on financial system liquidity," said the BSP.
The BSP also reported that in April, the financial system’s domestic liquidity (M3) expanded by 5.6 percent, a slower pace of growth compared to March’s 5.7 percent.
On a month-on-month seasonally-adjusted basis, outstanding loans of universal and commercial banks, net of RRPs, increased by 0.9 percent. M3 on a month-on-month seasonally-adjusted basis, also went up by about 0.5 percent.
The BSP said outstanding loans for production activities grew by 7.8 percent in April to P10.212 trillion.
This was boosted by an increase in real estate loans of 11 percent year-on-year to P2.442 trillion; a 9.2 percent increase in the electricity, gas, steam, and airconditioning supply loans to P1.302 trillion; a 7.6 percent increase in the loans to wholesale and retail trade, and repair of motor vehicles and motorcycles to P1.347 trillion; a 21.8 percent increase in the transportation and storage loans of P437.137 billion; and 15.1 percent hike in construction loans to P496.136 billion.
Meanwhile, consumer loans grew by 25.3 percent in April to P1.348 trillion due to increases in the credit card loans of 29.3 percent to P762.193 billion; motor vehicle loans which rose by 20.6 percent to P406.621 billion; and salary-based general purpose consumption loans which increased by 18.3 percent to P146.753 billion.
The BSP said it “will ensure that domestic liquidity and credit conditions remain in line with its price and financial stability objectives.”
As for M3, domestic claims grew by 10.6 percent year-on-year in April as claims on the private sector increased by 10.8 percent “with the sustained expansion in bank lending to non-financial private corporations and households.”
The net claims on the central government also expanded by 13.9 percent mainly because of the decline in the deposits of the National Government with the BSP.
Net foreign assets (NFA) in peso terms rose by 2.1 percent year-on-year in April with the BSP’s NFA rising by 4.6 percent. The NFA of banks, on the other hand, contracted due to higher bills and bonds payable, said the BSP.