MANILA, Philippines - The Bangko Sentral ng Pilipinas on Friday said outstanding loans from universal and commercial banks reached P3 trillion by the end of September, up 13.5% from a year ago.
In a statement, the BSP said it expects bank lending to continue growing, given that interest rates are at historic lows.
Production loans, comprising more than four-fifths of commercial banks' loan portfolios, grew 13.9 percent in September from a year earlier, lower than the previous month's 14.1 percent annual rise.
Growth in consumer loans was 14.6% to P246 billion in September from a year ago against 15.8% in August, due mainly to lower take-up of auto loans and credit card loans.
Meanwhile, overall domestic liquidity (M3) hit P4.7 trillion as of the end of September, growing year-on-year by 7.5 percent. M3 is a measure of money circulating in the economy.
The BSP said it will continue to monitor liquidity conditions to ensure credit activity remains supportive of overall economic growth.
"The continued rise in domestic liquidity indicates that overall liquidity conditions remain adequate to support domestic economic activity amid ongoing strains in the global economy,” BSP Deputy Governor Juan de Zuñiga Jr. said in a statement. - With Reuters