Bank lending in the Philippines grew at a slower pace in July, even as domestic liquidity continued to rise, according to the Bangko Sentral ng Pilipinas (BSP).
Outstanding loans of universal and commercial banks expanded by 11.8 percent, easing from June’s 12.1 percent. Lending to residents increased by 12.4 percent, slightly lower than the previous month’s 12.6 percent, while loans to nonresidents contracted by 8.1 percent, extending June’s 6.4 percent decline. Production-related loans grew by 10.8 percent, also down from June’s 11.1 percent.
Sector-wise, loan growth accelerated in real estate (10.7 percent), utilities (30.3 percent), wholesale and retail trade (8.5 percent), finance and insurance (13.1 percent), and information and communication (8.5 percent). However, consumer loans to residents slowed to 23.6 percent from 24.0 percent.
Domestic liquidity (M3) expanded by 6.2 percent year on year to ₱18.6 trillion, improving from June’s 5.9 percent increase. Net claims on the central government grew by 7.1 percent, while net foreign assets of the central bank declined by 1.2 percent due to lower reserves. In contrast, banks’ foreign asset holdings rose with increased exposure to foreign currency-denominated debt instruments.
The BSP reaffirmed its commitment to keeping liquidity conditions aligned with its price and financial stability objectives.
Philippine Bank Lending Growth Slows in July, Liquidity Expands
