The Central Bank of the Philippines published preliminary data showing outstanding loans of universal and commercial banks continued to rise in July, with year-on-year growth easing to 11.8% from 12.1% in June. After seasonal adjustment, outstanding loans increased 0.7% month on month. Loans to residents grew 12.4% year on year (from 12.6%), while loans to non-residents fell 8.1% (from a 6.4% decline). Lending for business activities expanded 10.8% (from 11.1%), with increases reported in real estate activities (10.7%), electricity, gas, steam and air-conditioning supply (30.3%), wholesale and retail trade and repair of motor vehicles and motorcycles (8.5%), financial and insurance activities (13.1%), and information and communication (8.5%). Consumer loans to residents, including credit card, motor vehicle and general-purpose salary loans, grew 23.6% (from 24.0%). The loan series excludes banks’ reverse repurchase agreements with the central bank, and non-resident loans include lending by banks’ foreign currency deposit units. The Central Bank of the Philippines reiterated that it monitors bank loans as a key monetary policy transmission channel and indicated it will seek to keep domestic liquidity and lending conditions aligned with its price and financial stability objectives.
Central Bank of the Philippines2025-09-05
Central Bank of the Philippines reports universal and commercial bank loan growth slowed to 11.8% year on year in July
The Central Bank of the Philippines reported a continued rise in outstanding loans of universal and commercial banks in July, with year-on-year growth slowing to 11.8% from 12.1% in June. Loans to residents increased by 12.4%, while loans to non-residents decreased by 8.1%. The bank emphasized its commitment to aligning domestic liquidity and lending conditions with its price and financial stability goals.