Broken down, growth in outstanding loans to residents eased to 9.7 percent in December from 10.7 percent in the previous month.

Meanwhile, the contraction in outstanding loans to non-residents deepened, recording an 8.1-percent decline following the 4.5-percent drop in November. These loans include those extended by big banks’ foreign currency deposit units (FCDUs) to borrowers abroad.

Loans supporting business activities generally grew by eight percent during the month, slower than the nine percent recorded in November.

Trends across major industries were mixed, with growth in real estate easing to 8.3 percent from nine percent, while wholesale and retail trade, including motor vehicle repair, slowed to 10.8 percent from 11.6 percent.

Financial and insurance activities, meanwhile, expanded faster at 3.9 percent from 3.5 percent, while electricity, gas, steam, and air-conditioning supply inched up to 26.8 percent from 26.6 percent.

Notably, consumer loans to residents expanded more slowly at 21.4 percent, marking the weakest growth for the segment in nearly three years since February 2023’s 21.3-percent expansion. This category covers credit card, motor vehicle, and general-purpose salary loans.

Domestic liquidity, or the amount of money in the economy as measured by M3, expanded by seven percent in December, breaching the ₱20-trillion mark. However, this growth rate was slower than the 7.6-percent increase recorded in November.

M3 is a broad measure of money supply that includes currency in circulation, bank deposits, and other financial assets that are easily convertible to cash.

Claims on the domestic sector—which cover both private and government entities—remained a key driver of money supply, rising by 10.1 percent in December, down from 10.6 percent in November.

Claims on a sector represent that sector’s liabilities to depository corporations, such as banks and the central bank.

In particular, claims on the private sector grew by 10.1 percent, moderating from the 11.1-percent growth seen in the previous month. This easing was due to slower bank lending growth to households and nonfinancial private corporations.

Meanwhile, net claims on the central government increased by 10.8 percent in December, slightly lower than the 11 percent recorded in November, mainly driven by the government’s higher borrowings.

The BSP said it will continue to ensure that liquidity remains consistent with price and financial stability.