Bank lending slows down in February: BSP

March 29, 2019

Outstanding loans of universal and commercial banks, net of reverse repurchase (RRP) placements with the BSP, grew at a slower rate of 13.7 percent in February from 15.3 percent in January, the Bangko Sentral ng Pilipinas (BSP) said Friday.

Likewise, the growth in bank lending inclusive of RRPs decelerated to 13.9 percent in February from a revised 14.5 percent in the previous month.

On a month-on-month seasonally-adjusted basis, commercial bank loans net of RRPs and inclusive of RRPs increased by 0.4 percent and 0.6 percent, respectively.

Loans for production activities—which comprised 88.4 percent of banks’ aggregate loan portfolio, net of RRP — increased at a slower pace of 13.6 percent in February from 15.5 percent in the previous month.

The growth in production loans was driven primarily by increased lending to the following sectors: real estate activities (12 percent); wholesale and retail trade, repair of motor vehicles and motorcycles (14.6 percent); financial and insurance activities (22.2 percent); manufacturing (13.7 percent); construction (44.4 percent); and, electricity, gas, steam and air conditioning supply (9.4 percent).

Bank lending to other sectors also increased during the month except that in other community, social and personal activities (-5.1 percent); and, professional, scientific and technical activities (-25.2 percent).

Meanwhile, the growth of loans for household consumption was higher in February at 14.9 percent relative to the revised 13.2 percent increase in January amid the acceleration in credit card loans, sustained growth in motor vehicle loans, and expansion of salary-based general purpose consumption loans and other types of household loans during the month. DMS