Philippine bank lending accelerated in August to its fastest pace in three months, as businesses stepped up borrowing.
Outstanding loans by universal and commercial banks rose 11% from a year earlier, quickening from 10.4% in July, Bangko Sentral ng Pilipinas data showed. Lending, net of banks’ reverse repurchase placements with the central bank, reached P15.12 trillion.
Corporate borrowing remained the main driver of growth. Business loans expanded 10.6% in August from 9.8% a month earlier, supported by increased lending to sectors including utilities, trade, financial services, manufacturing, information and communications, and transportation.
Production loans totaled P12.73 trillion.
Consumer credit stayed robust, though momentum eased. Household loans rose 16.2% year-on-year to P2.08 trillion, slower than July’s 17.1% increase as growth in credit card and auto loans moderated.
Credit card lending climbed 23.3% to P1.32 trillion, while motor vehicle loans increased 5.8% to P542.98 billion.
Loans to residents advanced 11.3% to P14.82 trillion, accounting for nearly all outstanding bank credit. Lending to non-residents fell 1.5% to P305.19 billion.
“The BSP monitors bank lending as it serves as a key monetary policy transmission channel,” the central bank said.
The BSP said it would continue to ensure lending conditions remain consistent with its price and financial stability mandates.
