ASEAN KEY DESTINATIONS
Bank lending grows in Philippines
Inclusive of RRPs, bank loans also picked up by 8.9 percent from 5.5 percent the previous month.
On a month-on-month seasonally adjusted basis, commercial banks’ lending in July rose by 0.2 percentage points for loans net of RRPs, but went down by 0.2 percentage points for loans inclusive of RRPs.
According to the BSP, the growth of loans for production—comprising 85.5 percent of the total loan portfolio, stepped up by 12 percent in July from 9.3 percent in June.
Loans for household consumption also continued to rise albeit at a slower pace of 12.5 percent from 13 percent in June. Household consumption includes credit card, auto loans and others.
The growth of production loans was driven by increased lending to manufacturing, which grew by 23.4 percent; real estate and business services, 15.7 percent; agriculture, 13.5 percent; electricity, water and gas, 17.6 percent; financial intermediation, 12.6 percent; wholesale and retail trade, 5.2 percent; and public administration and defense, 18.3 percent.
Similarly, lending to construction grew at a faster pace of 22 percent in July from 18.7 percent in June.
The central bank, however, said lending to fishing contracted by 32.2 percent; transportation, storage and communications, 2.3 percent; and other community, social and personal services, 24.1 percent.
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