Bank lending by the country’s major banks accelerated in March as stronger borrowing by businesses and consumers continued to support economic activity, according to the Bangko Sentral ng Pilipinas (BSP).
Data released by the central bank showed outstanding loans issued by universal and commercial banks grew by 10.7 percent year-on-year in March, faster than the revised 9.6-percent growth recorded in February.
On a seasonally adjusted month-on-month basis, bank lending also rose by 1.7 percent.
The BSP said lending growth was driven by sustained financing for production activities and household spending.
Loans for business activities expanded by 9.7 percent in March from 8.6 percent a month earlier, with stronger credit growth recorded in sectors such as real estate, power supply, trade, and transportation.
Real estate lending grew by 8.8 percent, while loans to the electricity, gas, steam, and air-conditioning sector rose by 26.7 percent.
Credit for wholesale and retail trade, including vehicle repair services, increased by 9.3 percent, while lending for transportation and storage surged by 19.4 percent.
Consumer loans also remained strong, rising by 20.5 percent in March, although slightly slower than the 20.8-percent growth posted in February due to softer demand for motor vehicle and salary-based consumption loans.
Overall outstanding loans to residents grew by 11.1 percent in March from the revised 10.2 percent recorded previously.
Meanwhile, loans to non-residents declined by 5.9 percent, an improvement from the steeper 13.2-percent contraction in February.
The BSP said it will continue monitoring domestic liquidity and lending conditions to ensure they remain consistent with its price and financial stability objectives.