Initial data indicated that the outstanding loans of universal and commercial banks (U/KBs), net of reverse repurchase (RRP) placements with the Bangko Sentral ng Pilipinas (BSP), expanded by 11.8 percent year-on-year in March, a slight moderation from the 12.2-percent growth recorded in February. On a month-on-month seasonally adjusted basis, outstanding U/KB loans, net of RRPs, increased by 0.9 percent.
The outstanding loans extended to residents, net of RRPs, grew at a more subdued pace of 12.3 percent in March, compared to the 12.6-percent expansion registered in February. In contrast, loans granted to non-residents declined by 5.6 percent in March, following a 3.2-percent contraction in the previous month.
Lending for production activities grew by 10.9 percent in March, slightly lower than the 11.2-percent increase in February. The deceleration in loan growth was attributed to the more moderate expansion in credit extended to key sectors, including real estate activities (9.6 percent); wholesale and retail trade, repair of motor vehicles and motorcycles (11.6 percent); information and communication (8.9 percent); construction (1.8 percent); arts, entertainment, and recreation (12.6 percent); water supply, sewerage, waste management, and remediation activities (12.9 percent); as well as accommodation and food service activities (19.3 percent).
Meanwhile, consumer loans to residents rose by 23.6 percent in March, marginally lower than the 24.1-percent growth recorded in February, primarily driven by increased credit card loans, motor vehicle financing, and salary-based general-purpose consumption loans.
Going forward, the BSP remains committed to ensuring that domestic liquidity and bank lending conditions align with its price and financial stability objectives.
