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.