Money supply, bank loans post growth in December 2024 

The Bangko Sentral ng Pilipinas (BSP) reported Wednesday that domestic liquidity, also known as M3, continued to expand in December 2024, according to a report by Philippine News Agency.

The BSP said the country’s money supply increased by 7.7 percent to P18.8 trillion in December 2024 from P17.4 trillion in December 2023.

Month-on-month, M3 marginally improved by 0.2 percent from P18.1 trillion in November last year.

Domestic claims were higher in December 2023, increasing by 10.4 percent to PHP20.52 trillion from PHP18.6 trillion in the same month in 2023.

Driving the growth of domestic claims in December last year were higher claims on the private sector, which rose 12.2 percent to PHP13.2 trillion from PHP11.7 trillion in the same period in 2023, due to banks’ higher lending volume.

The BSP also recorded higher net claims on the central government, increasing by 7.2 percent PHP5.5 trillion from PHP5.2 trillion for the same comparable period due to continued borrowings by the national government.

Likewise, net foreign assets in peso terms went up by 6 percent with the continued increase in gross international reserves level.

Meanwhile, bank lending also increased by 12.2 percent in December 2024 to PHP13.1 trillion from PHP11.7 trillion in the same period in 2023.

Outstanding loans to residents, net of reverse repurchase (RRP) placements, increased by 12.4 percent in December last year to PHP12.8 trillion from PHP11.4 trillion in the same month in 2023.

Loans for production activities also expanded for the same comparable period, up by 10.8 percent, due largely to the sustained increase in lending to key industries such as wholesale and retail trade, repair of motor vehicles and motorcycles, up by 10.1 percent; electricity, gas, steam and air-conditioning supply, up by 14.2 percent; manufacturing, up by 7.4 percent; financial and insurance activities, up by 7.4 percent; and construction, up by 12.6 percent.

“Likewise, consumer loans to residents went up further by 25 percent in December from 23.3 percent in November, due to the increase in credit card loans, salary-based general purpose consumption loans, and motor vehicle loans,” BSP added.

“Looking ahead, the BSP will ensure that domestic liquidity and bank lending conditions remain consistent with its price and financial stability objectives,” it said.