Preliminary data show that outstanding loans of universal and commercial banks, net of reverse repurchase (RRP) placements with the BSP, grew by 11.6 percent in January, faster than the 10.9-percent expansion in the previous month. On a month-on-month seasonally-adjusted basis, commercial bank loans net of RRPs grew by 1.5 percent.
Loans from universal and commercial banks for household consumption grew by 40.1 percent in January from 27.5 percent in December due to faster growth in credit card and motor vehicle loans during the month.
Meanwhile, loans for production activities net of RRPs�expanded at a rate of 8.8 percent in January 2020, lower than the reported growth in December 2019 at 9.1 percent. The sustained increase in production loans was driven primarily by lending to the following sectors: real estate activities (20.5 percent); financial and insurance activities (16.2 percent); electricity, gas, steam and air conditioning supply (8.2 percent); information and communication (18.6 percent); and construction (15.5 percent).
Bank lending to other sectors also increased during the month, except those to manufacturing (-2.9 percent), mining and quarrying (-11.6 percent), and other community, social and personal activities (-34.8 percent).
Going forward, the BSP will continue to ensure that the expansion in domestic credit and liquidity remains consistent with the BSP's price and financial stability objectives.
Source: Bangko Sentral ng Pilipinas (BSP)