Bank lending expands by 2.7 percent in September: BSP

ABS-CBN News

Posted at Oct 29 2021 04:30 PM

MANILA— Outstanding loans of universal and commercial banks, net of reverse repurchase (RRP) placements with the BSP rose by 2.7 percent in September compared to the same period last year, the central bank said Friday. 

The total is also faster compared to the 1.3-percent expansion in August, the Bangko Sentral ng Pilipinas said in a statement. 

"The observed increase in outstanding loans of U/KBs reflects the modest recovery in banks’ overall lending attitudes along with improved economic prospects owing to the gradual lifting of pandemic containment measures," the BSP said.

Outstanding loans for production activities grew 4.4 percent in September from 3.1 percent the previous month, it said.

Outstanding loans to residents grew by 3.2 percent in September from 2 percent the previous month due to recovery in loans for production activities, it added.

Consumer loans to residents or for household consumptions fell at a slower rate of 7.8 percent compared to the 8.4 percent decline in August due to lesser contraction in credit card, motor vehicle and salary-based general purpose loans, the BSP said. 

The BSP said the country's fiscal and health measures as well as its monetary policy would boost domestic demand and market confidence. 

The Monetary Board has kept the country's benchmark borrowing rate at 2 percent to support economic recovery and boost lending activities. 

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