- Businesses are borrowing more from Philippine banks, helping push overall bank lending growth to 11.0% in August, according to the Bangko Sentral ng Pilipinas (BSP).
- Loans by universal and commercial banks grew 11.0% year-on-year in August, faster than the 10.4% growth recorded in July.
- Outstanding loans to residents, which make up most of total bank lending, also increased by 11.3% during the month.
Businesses are borrowing more from Philippine banks, helping push overall bank lending growth to 11.0% in August, according to the Bangko Sentral ng Pilipinas (BSP).
Loans by universal and commercial banks grew 11.0% year-on-year in August, faster than the 10.4% growth recorded in July.
Outstanding loans to residents, which make up most of total bank lending, also increased by 11.3% during the month.
Business loans grew 10.6% as banks increased lending to several major industries, including real estate, electricity and utilities, wholesale and retail trade, manufacturing, financial and insurance services, information and communication, and transportation and storage.
The increase suggests that businesses continued to tap bank financing for their operations and other activities as demand for credit remained strong.
Consumer borrowing, meanwhile, grew at a slower pace. The BSP said the easing was driven by slower growth in credit card and motor vehicle loans.
That means the August lending figures were largely supported by business borrowing rather than stronger demand for consumer credit.
The BSP monitors bank lending because credit is an important channel through which monetary policy affects the economy. The central bank said it will continue to make sure lending conditions remain consistent with its mandate to maintain price and financial stability.