Credit growth slowed in November but remained supportive of the domestic economy as bulk of the loans went into production activities, Bangko Sentral ng Pilipinas data showed.
Lending by universal and commercial banks, less their placements with the central bank, rose 20 percent to P4.317 trillion last month from P3.598 trillion in the same period in 2013. The growth rate is slower than the 21.1 percent recorded in October, the BSP said.
Together with placements with the BSP, lending went up 18.9 percent to P4.585 trillion from P3.856 trillion. Again, the expansion rate is a deceleration from the 20 percent seen in October.
“The continued expansion in bank lending is expected to support the growth of the domestic economy,” the BSP said.
Loans for production activities continued to make up bulk of the credit during the month at 90 percent.
These borrowings climbed 18.6 percent to P3.842 trillion from year-ago levels and were mainly put into real estate (P772.015 billion); manufacturing (P683.504 billion); wholesale and retail trade (P620.051 billion); electricity, gas and water (P450.935 billion); and financial intermediation (P364.865 billion) activities.
Consumer loans, meanwhile, swelled 20.7 percent to P331.686 billion in November from P274.718 billion in the same month a year ago.
This was driven by a 5.7-percent expansion in credit card loans to P160.679 billion, and a 22.7-percent surge in borrowings for car financing to P113.432 billion. Other consumer loans during the period ballooned 90.7 percent to P57.575 billion.
“Going forward, the BSP will ensure that credit and liquidity conditions keep pace with overall economic growth while remaining consistent with the BSP’s price and financial stability objectives,” the central bank said.
source: Philippine Star
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