The Central Bank of the Philippines (BSP) released preliminary data showing outstanding loans of universal and commercial banks, net of reverse repurchase (RRP) placements with the BSP, grew by 12.2 percent year on year in December, up from 11.1 percent in November. On a seasonally adjusted month on month basis, outstanding U/KB loans net of RRPs increased by 1.4 percent. Loans to residents, net of RRPs, rose by 12.4 percent year on year (from 11.4 percent), while loans to non-residents expanded by 5.7 percent (from 3.9 percent); non-resident loans include foreign currency deposit unit loans to non-residents. Lending for production activities increased by 10.8 percent (from 9.8 percent), supported by higher lending to wholesale and retail trade and repair of motor vehicles and motorcycles (10.1 percent), electricity, gas, steam and air-conditioning supply (14.2 percent), manufacturing (7.4 percent), financial and insurance activities (7.4 percent), and construction (12.6 percent). Consumer loans to residents accelerated to 25.0 percent (from 23.3 percent), reflecting increases in credit card loans, salary-based general purpose consumption loans, and motor vehicle loans. The BSP indicated it will continue to ensure domestic liquidity and bank lending conditions remain consistent with its price and financial stability objectives.
Central Bank of the Philippines 2025-02-11
Central Bank of the Philippines reports universal and commercial bank loan growth rose to 12.2 percent in December net of RRP placements
The Central Bank of the Philippines reported a 12.2% year-on-year growth in outstanding loans of universal and commercial banks, net of reverse repurchase placements, in December. Loans to residents increased by 12.4%, while non-resident loans grew by 5.7%. The BSP aims to maintain domestic liquidity and bank lending conditions aligned with its stability objectives.