BSP reports steady credit growth, faster liquidity expansion in July

The Bangko Sentral ng Pilipinas (BSP) reported that domestic liquidity grew at a faster pace in July while bank lending sustained double-digit growth, reflecting continued support for businesses and households.

Preliminary data showed that outstanding loans of universal and commercial banks rose by 11.8 percent year-on-year in July, amounting to %u20B113.57 trillion. Lending to residents expanded by 12.4 percent, while loans to non-residents eased.

Several key industries posted stronger lending activity, including real estate (10.7 percent), electricity, gas, steam, and air-conditioning supply (30.3 percent), wholesale and retail trade (8.5 percent), financial and insurance activities (13.1 percent), and information and communication (8.5 percent). Consumer loans remained robust, climbing 23.6 percent, driven by credit cards, motor vehicle loans, and salary-based lending.

Meanwhile, domestic liquidity (M3) rose by 6.2 percent year-on-year to about %u20B118.6 trillion in July, faster than the 5.9 percent growth recorded in June. Claims on the domestic sector increased by 10.5 percent, supported by lending to non-financial corporations and households, while net claims on the central government rose 7.1 percent amid higher borrowings.

The BSP said liquidity and lending conditions continue to align with its objectives of maintaining both price and financial stability. “Looking ahead, the BSP will ensure that domestic liquidity and bank lending conditions remain aligned with its price and financial stability objectives,” the central bank said in a statement.