Outstanding loans of universal and commercial banks, net of reverse repurchase placements with the Bangko Sentral, grew by 12.2 percent in February, faster than the 11.6-percent expansion in the previous month, preliminary data showed .
On a month-on-month seasonally-adjusted basis, commercial bank loans net of RRPs grew by 1.0 percent, the BSP said.
Loans for production activities net of RRPs expanded at a rate of 9.6 percent in February, higher than the reported growth in January at 8.8 percent.
The sustained increase in production loans was driven primarily by lending to the following sectors: real estate activities (20.0 percent); financial and insurance activities (19.0 percent); electricity, gas, steam and air conditioning supply (9.7 percent); information and communication (22.5 percent); and construction (16.2 percent).
Bank lending to other sectors also increased during the month, except those to manufacturing (-2.1 percent), mining and quarrying (-10.2 percent), and other service activities (-34.7 percent).
Meanwhile, growth in loans for household consumption remained robust at 37.6 percent in February from 40.1 percent in January due mainly to faster growth in motor vehicle loans during the month.
Going forward, the BSP said it “will remain vigilant in monitoring liquidity and credit dynamics amid significant disruptions to economic activity. The BSP reassures the public of its commitment and readiness to deploy its full range of instruments to ensure that domestic liquidity and credit remain adequate amid the ongoing health crisis”.