Bank lending grew at a faster pace in May as demand for credit from businesses and households remained steady, the Bangko Sentral ng Pilipinas (BSP) said.
Outstanding loans of universal and commercial banks rose by 12.1 percent year-on-year in May, accelerating from the previous month’s growth, according to BSP data.
Loans to residents, which accounted for most of total outstanding bank credit, increased by 12.6 percent during the month. Loans to non-residents made up the remaining smaller share.
Business lending expanded by 11.7 percent in May, driven by continued borrowing from key industries.
The BSP said loans to the electricity, gas, steam, and air-conditioning supply sector posted the strongest growth at 32.9 percent, while lending to transportation and storage rose by 21.4 percent.
Loans for wholesale and retail trade, including repair of motor vehicles and motorcycles, increased by 10.1 percent. Lending to real estate activities grew by 7.3 percent, while manufacturing loans went up by 6.4 percent.
Consumer loans to residents also climbed by 19.0 percent, although slightly slower than the 19.6-percent growth recorded in the previous month.
The BSP attributed the softer growth in consumer lending to a slower expansion in credit card and motor vehicle loans.
The central bank said it continues to monitor bank lending as a key channel for monetary policy transmission.
Moving forward, the BSP said it will ensure that credit and liquidity conditions remain consistent with its objectives of maintaining price and financial stability.