Bank lending up 10.1% in May
Outstanding loans for production activities rose by 8.4 percent to P10.3 trillion from 7.8 percent as the transportation and storage sector mostly borrowed funds, representing 26.7 percent of the total loans.
Daily TribuneOutstanding loans for production activities rose by 8.4 percent to P10.3 trillion from 7.8 percent as the transportation and storage sector mostly borrowed funds, representing 26.7 percent of the total loans.
Lending by universal and commercial banks accelerated in May by 10.1 percent from 9.6 percent in April year-on-year as businesses expanded operations.
Month-on-month, bank lending increased by 1.1 percent, according to the preliminary data released Friday by the Bangko Sentral ng Pilipinas (BSP).
The BSP data showed the total outstanding loans to residents grew by 10.2 percent from 9.6 percent recorded in April.
Meanwhile, outstanding loans to non-residents declined to 8.1 percent from 10.8 percent.
Breaking the figures down, outstanding loans for production activities rose by 8.4 percent to P10.3 trillion from 7.8 percent as the transportation and storage sector mostly borrowed funds, representing 26.7 percent of the total loans.
This was followed by real estate which accounted for 13.2 percent, and wholesale and retail trade and repair of motor vehicles and motorcycles with 11.1 percent.
The other borrowers were manufacturing firms with 10.1 percent and suppliers of air conditioning with 7.7 percent.
Retail loans higher
Consumer loans to residents also grew, although at a slower pace by 25.6 percent to P1.4 trillion from 25.3 percent.
The BSP data showed this was mainly driven by credit cards with P776 billion in transaction value, followed by auto loans with P415 billion.
Bank of the Philippine Islands chief economist Jun Neri said consumers might loosen their fists in the next several months as the BSP signaled a possible rate cut in August due to lower inflation in June.
“Inflation appears to have peaked for the year, likely remaining near the upper limit of the BSP’s target in July before a significant decline starting in August,” he said.
The BSP maintains a 6.5 percent policy and aims to stabilize inflation within.