BSP: Lending lags in June
Consumer loans to residents increased by 23.7 percent in June, slightly faster than the 22.7 percent in May due to the rise in credit card and auto loans.
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Daily TribuneConsumer loans to residents increased by 23.7 percent in June, slightly faster than the 22.7 percent in May due to the rise in credit card and auto loans.
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While economic activity gains, loans from universal and commercial banks managed to grow by only 0.6 percent in June from May as high interest rates capped borrowing appetite.
Year-on-year, outstanding loans of universal and commercial banks fell to 7.8 percent from 9.4 percent in May.
Growth in outstanding loans to residents slowed to 7.9 percent in June from 9.3 percent in May.
Consumer loans to residents increased by 23.7 percent in June, slightly faster than the 22.7 percent in May due to the rise in credit card and auto loans.
Meanwhile, outstanding loans to factories expanded by 6.3 percent in June, but at a slower rate than the 7.9 percent in the previous month.
Industries activity gains
These are loans to key industries like electricity, gas, steam, and air-conditioning supply with 11.8 percent growth; wholesale and retail trade, and repair of motor vehicles and motorcycles rose 9.7 percent; real estate increased 3.8 percent; financial and insurance activities expanded 7.7 percent; and information and communication gained 11.2 percent.
Outstanding loans to non-residents grew by 4.8 percent from 13.2 percent month-on-month.
"The slowdown in credit activity reflects the impact of monetary policy tightening which continues to work its way through the economy.
"Looking ahead, the BSP remains prepared to ensure that domestic liquidity and lending dynamics are in line with its price and financial stability objectives," BSP said.
The central bank hiked its policy rate to 6.25 percent by 425 basis points to rein in inflation, which peaked at 8.7 percent in January before falling to 5.4 percent in June.
BPI chief economist Jun Neri said there is still room for growth in consumer lending for discretionary expenses as inflation is projected to continue slowing.
Meanwhile, Asia United Bank manager Jacob Ng said several corporate clients temporarily stopped borrowing as they faced delayed payments from clients in certain industries.
