Bank lending growth reaches 3-month high
Bank lending growth accelerated to a three-month high in August as businesses continued to tap credit, offsetting a further slowdown in household borrowing.
Manila, Philippines — Bank lending in the Philippines surged to a three-month peak in August, driven by a surge in business borrowing and slightly slower growth in household loans, according to preliminary data from the Bangko Sentral ng Pilipinas (BSP). Business loans expanded by 10.6 percent in August, outpacing the 9.8-percent increase in July.
Outstanding loans for production loans reached P12.73 trillion, comprising roughly 84.2 percent of total bank credit. The real estate sector saw significant lending growth, with outstanding loans totaling P2.9 trillion. Manufacturing and financial activities also experienced notable credit increases, with lending to financial and insurance activities rising by 9.0 percent to P1.18 trillion.
However, household borrowing, while continuing to expand, grew at a slower pace, with consumer loans increasing by 16.2 percent year-on-year in August. Despite the broader economic recovery, the construction and agriculture sectors faced weaker lending conditions. The BSP reaffirmed its commitment to maintaining lending and liquidity conditions consistent with its mandate for price stability and financial health.
Written by urgent.news from Philippine Star Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
