MANILA - Bank lending continued to accelerate, growing by 21.1 percent in September year-on-year from 20.4 percent in August, the central bank said Monday.
The Bangko Sentral ng Pilipinas (BSP) said bank loans amounted to P6.76 trillion in September this year or P1.18 trillion higher than the P5.58 trillion recorded in the same month last year.
Meanwhile, domestic liquidity or the amount of money circulating in the financial system expanded slower in September, growing 14.5 percent year-on-year last month from 15.4 percent in August.
"Going forward, the BSP will continue to ensure that the expansion in domestic credit and liquidity conditions proceeds in line with overall economic growth while remaining consistent with the BSP's price and financial stability objectives," the central bank said in a statement.
Credit ratings firms and investment banks have previously raised concerns that the Philippine economy may overheat.
Monetary and fiscal authorities, however, allayed these concerns saying the the country's macroeconomic fundamentals remain sound.
Inflation averaged 3.1 percent in the first 9 months of the year staying within the central bank's 2-4 percent target range.