MANILA - Outstanding loans of universal and commercial banks, net of reverse repurchase (RRP), decreased by 2 percent year-on-year in June, slower than the 4 percent decline in May, the central bank said on Friday.
On a month-on-month seasonally-adjusted basis, outstanding universal and commercial bank loans, net of RRPs, rose by 1.1 percent, the Bangko Sentral ng Pilipinas (BSP) said in a statement.
Consumer loans to residents dropped by 8.6 percent in June from a 9.2 percent decrease in May "as motor vehicle loans and salary-based consumption loans declined further," the central bank said.
Outstanding loans to major industries also fell further but also at a slower rate, it said.
"Looking ahead, the BSP shall continue to provide monetary policy support in order for the economic recovery to gain further traction," the BSP said.
The BSP said the targeted fiscal initiatives and the accelerated vaccination program "remain critical" in restoring market confidence and in boosting recovery.
The central bank earlier kept the benchmark borrowing rate, used by banks to price loans, at its lowest level of 2 percent to support economic recovery and to stimulate lending activities.