The Central Bank of the Philippines published preliminary data showing loans from universal and commercial banks (U/KBs) expanded by 9.2% year on year in December, down from 10.3% in November. On a seasonally adjusted basis, outstanding U/KB loans fell by 2.0% month on month. Outstanding loans to residents rose by 9.7% (from 10.7%), while loans to non-residents declined by 8.1% (from a 4.5% decline), with non-resident figures including U/KB foreign currency deposit unit lending. Loans for business activities grew by 8.0%, with lending increasing to real estate activities (8.3%), electricity, gas, steam and air-conditioning supply (26.8%), wholesale and retail trade including vehicle repair (10.8%), and financial and insurance activities (3.9%); consumer loans to residents grew by 21.4% (from 22.9%). The series excludes U/KB reverse repurchase agreements with the central bank. The central bank reiterated that it monitors bank lending as a key monetary policy transmission channel and will aim to keep domestic liquidity and lending conditions consistent with its price and financial stability mandates.
Central Bank of the Philippines reports universal and commercial bank lending growth slows to 9.2% in December
The Central Bank of the Philippines reported a 9.2% year-on-year increase in loans from universal and commercial banks in December, down from 10.3% in November, with a 2.0% month-on-month decline on a seasonally adjusted basis. The bank emphasized its commitment to monitoring lending as a key monetary policy tool to maintain liquidity and stability.