MANILA - High demand for credit pushed liquidity in the financial system to double-digit expansion in July, the Bangko Sentral ng Pilipinas (BSP) said Thursday.
The central bank said money supply or M3 grew faster at 13.5 percent in July from the revised 13.3 percent in June.
BSP Gov. Nestor Espenilla said the amount of money circulating in the financial system reached P9.97 trillion in end July or P1.18 trillion higher than the P8.78 trillion in end July last year.
"Demand for credit remained the principal driver of money supply growth," he said.
The BSP said credit growth reached 19.7 percent in July amid strong disbursements to the real estate and manufacturing sectors in support of the country's growing economy.
Preliminary data showed bank loans amounted to P6.48 trillion in end July or P1.06 trillion higher than the P5.41 trillion recorded in the same month last year.
Loans for production activities accounted for 88.4 percent of the lending by the banking sector.
"Going forward, the BSP will continue to closely monitor monetary conditions in order to ensure that domestic liquidity stays adequate to support the BSP's price and financial stability objectives," Espenilla said.