Outstanding loans extended by universal and commercial banks (U/KBs) to both businesses and individual consumers continued to grow in October.
Preliminary data indicate that U/KB lending increased by 10.3 percent year‑on‑year, slightly slower than the 10.5‑percent expansion recorded in September. On a seasonally adjusted basis, outstanding U/KB loans rose by 0.6 percent month‑on‑month.
Lending to residents grew at a steady pace of 10.9 percent in October, while loans to non‑residents contracted by 11.1 percent, following a 2.9‑percent decline in the previous month.
Credit extended for production activities increased by 9.1 percent, supported by higher lending to key industries such as real estate (9.9 percent); electricity, gas, steam, and air‑conditioning supply (24.8 percent); wholesale and retail trade, including the repair of motor vehicles and motorcycles (11.7 percent); financial and insurance activities (8.5 percent); information and communication (8.2 percent); and transportation and storage (13.0 percent).
Consumer loans to residents—including credit card, motor vehicle, and salary‑based general‑purpose loans- expanded by 23.1 percent, slightly slower than the 23.5‑percent growth posted in September.
The Bangko Sentral ng Pilipinas (BSP) continues to monitor bank lending developments, recognizing their importance as a key transmission channel of monetary policy. Moving forward, the BSP remains committed to ensuring that domestic liquidity and credit conditions support its objectives of maintaining price stability and safeguarding financial stability.
