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 Philippines 2025-09-05
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.