MANILA - The Bangko Sentral ng Pilipinas said on Monday that domestic liquidity or M3 expanded faster at 13.2 percent in June from the revised 11.3 percent in May as bank credit grew 19 percent.
"Demand for credit remained the principal driver of money supply growth," BSP Governor Nestor Espenilla Jr. said.
He added that the amount of money circulating in the financial system reached P9.88 trillion in June or P1.15 trillion higher than the P8.73 trillion in the same month last year.
The 19 percent credit growth last month was also faster than the 18.7 percent expansion recorded in May.
The BSP said bank lending remained high amid a strong demand for funds for business expansion by corporate and individual borrowers.
Preliminary data showed bank loans amounted to P6.43 trillion in end-June or P1.11 trillion higher than the P5.41 trillion recorded in end-June last year, according to the central bank.
Espenilla however said the expansion of M3 continues to be manageable and consistent with the BSP's current outlook for inflation and economic activity.