Money supply expands in October
Lawrence Agcaoili (The Philippine Star) - December 6, 2015 - 9:00am

MANILA, Philippines - Domestic liquidity picked up in October amid the country’s accelerating economic growth, the Bangko Sentral ng Pilipinas reported over the weekend.

 Based on BSP data, money supply grew 9.5 percent to P7.91 trillion in end-October from P7.22 trillion in end-October last year.

The growth, however, was slower compared to the revised 8.7 percent expansion registered in September.

BSP Governor Amando Tetangco Jr. said money supply continued to expand due largely to sustained demand for credit.

Domestic claims grew 12.4 percent in October from the revised 12.7 percent in September.

“Credits to the private sector increased at a faster pace relative to the previous month,” Tetangco said. 

Data showed the bulk of bank loans in October were channeled to key production sectors such as real estate activities; electricity, gas, steam and airconditioning supply; wholesale and retail trade, and repair of motor vehicles and motorcycles; financial and insurance activities; and construction.

Meanwhile, net public sector credit rose 12.1 percent in October, slower than the 16.5-percent growth in September.

Net foreign assets (NFA) in peso terms grew 8.2 percent in October from the revised 6.8 percent in the previous month.

“The BSP’s NFA position continued to expand during the month on the back of robust foreign exchange inflows coming mainly from overseas Filipinos’ remittances, business process outsourcing receipts, and portfolio investments,” Tetangco said.

The NFA of banks likewise increased as banks’ foreign assets expanded at a faster pace relative to that of their foreign liabilities.

“Banks’ foreign assets increased due largely to the growth in their investments in marketable debt securities, while banks’ foreign liabilities grew mainly on account of higher deposits and placements made by foreign banks with other banks,” the BSP chief said.

Tetangco reiterated the continued expansion of domestic liquidity during the month indicates money supply remains sufficient to support economic growth.

 

 

ACIRC BANGKO SENTRAL BANKS BSP FOREIGN GOVERNOR AMANDO TETANGCO JR. GREW GROWTH PERCENT PILIPINAS TETANGCO
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