MANILA - Outstanding loans of universal and commercial banks, net of reverse repurchase, declined by 4 percent in May following a 5 percent drop in April, the Bangko Sentral ng Pilipinas said Wednesday.
On a month-on-month seasonally-adjusted basis, outstanding universal and commercial bank loans, net of RRPs, rose by 0.4 percent, the BSP said in a statement.
"Credit activity has remained muted as the emergence of new coronavirus variants and the continued risk of infection dampen prospects for economic recovery," the BSP said.
Consumer loans to residents fell 9.2 percent in May as motor vehicle loans and salary-based consumption loans continued to decline, the central bank said.
Outstanding loans to major industries also declined, including manufacturing (-7.9 percent), wholesale and retail trade and repair of motor vehicles and motorcycles (-7.1 percent), and professional, scientific and technical activities (-56.9 percent).
The decrease was partially offset by the increase in loans from real estate activities (3.9 percent), information and communication (3.4 percent), human health and social work activities (13.7 percent) and construction (2.8 percent).
Total outstanding loans for production activities activities, net of RRPs, declined by 2.9 percent in May following a 3.9 percent contraction in April, the BSP said.
The BSP in its recent Monetary Board Meeting kept the benchmark interest rate unchanged at 2 percent.