BSP PR
Preliminary data show that growth in outstanding loans of universal and commercial banks, net of reverse repurchase (RRP) placements with the BSP, eased to 2.8 percent in September from 4.7 percent in August. On a month-on-month seasonally-adjusted basis, outstanding universal and commercial bank loans, net of RRPs, decreased by 1.0 percent. The general decline in bank growth partly reflects banks’ reduced tolerance for risk, decline in loan demand due, in turn, to weak business and income prospects and observed shift by non-financial corporates to alternative sources of funds.
Loans for production activities, net of RRPs, grew by 2.4 percent in September from 4.1 percent (revised) in August as loans across most sectors decelerated during the month. Outstanding loans to key sectors also continued to contract, particularly in manufacturing (-2.6 percent) as well as wholesale and retail trade and repair of motor vehicles and motorcycles (-3.4 percent). Meanwhile, the following sectors contributed to the overall growth in production loans: real estate activities (7.3 percent); information and communication (9.7 percent); electricity, gas, steam, and air conditioning supply (3.0 percent); human health and social work activities
(44.5 percent); and transportation and storage (8.4 percent).
Similarly, loans to households expanded at a lower rate of 10.2 percent in September from 12.9 percent in August mainly due to the continued slowdown in credit card and motor vehicle loans during the month.
The BSP emphasizes that its accommodative monetary policy stance, together with the National Government’s ongoing health and fiscal initiatives, remains crucial in supporting market sentiment and credit activity. Looking ahead, the BSP reassures the public of its commitment to deploy its full range of instruments as necessary to ensure that domestic liquidity and credit remain adequate amid significant economic disruptions due to the ongoing health crisis.
