MANILA— The outstanding loans of universal and commercial banks net of reverse repurchase (RRP) placements with the Bangko Sentral ng Pilipinas increased faster at 3.5 percent in October, data from the central bank showed.
The total is higher compared to the 2.7 percent increase in September, the BSP said in a statement.
On a month-on-month seasonally-adjusted basis, outstanding universal and commercial bank loans, net of RRPs, rose by 0.6 percent, it said.
"The continued recovery in outstanding loans of [universal and commercial banks] reflects the expansion in business activity amid easing quarantine restrictions, declining COVID-19 cases and increasing vaccinations," the central bank said.
Growth in loans suffered from the pandemic with reluctant banks and with cautious consumers.
The country's interest rate, used by banks to price loans, was kept at its record low of 2 percent for over a year to support economic recovery.
The central bank will hold its last monetary policy-setting meeting for the year this month.