Bank lending in June up 20% to P4.02 T

MANILA, Philippines - Lending by  universal and commercial banks  rose 20.1 percent to P4.02 trillion in June from a year ago, the Bangko Sentral ng Pilipinas (BSP) reported yesterday.

“The sustained expansion in bank lending reflects the strong underpinnings of the domestic economy,” the BSP said.

BSP data showed the bulk of loans went to production activities, which expanded by 17.7 percent  in June from 19 percent in May.

Loans for productions activities continued to make up four-fifths of the total loan portfolio as these borrowings went up 17.7 percent to P3.58 trillion from P3.05 trillion last year.

BSP data showed these loans were mainly extended to real estate (P717.68 billion); manufacturing (P627.48 billion); wholesale and retail trade (P559.47 billion); electricity, gas and water (P403.58 billion); and financial intermediation (P341 billion).

Consumer loans during the month also went up by 16.2 percent to P311.09 billion.

Credit card loans climbed 4.8 percent to P156.924 billion, while auto loans rose 14.2 percent to P102.05 billion. Other consumer loans also grew 82.2 percent to P52.11 billion.

Domestic liquidity, or money circulating in the financial system, grew by 23 percent to P7.1 trillion in June from 28.4 percent in May after the central bank implemented several policy measures.

“Going forward, the BSP will continue to assess prevailing monetary conditions to ensure that liquidity and credit activities remain consistent with the BSP’s price and financial stability objectives,” the central bank

The economy expanded by a slower-than-expected 5.7 percent in the first quarter but the government stood by its goal of achieving a 6.5 to 7.5 percent growth this year.