MANILA - Loans extended by the country's largest banks grew 6.1% in September, the Bangko Sentral ng Pilipinas (BSP) reported on Tuesday.

The figure is almost double the 3.1% annual rise in August.

In a statement, the BSP said bank loans grew mainly on the back of auto loans and credit card lending.

Overall lending growth in July was the slowest since October 2007, when growth was 2.8%. The expansion in loans net of reverse repurchase deals for the month was the weakest since December 2007.

BSP Deputy Governor Diwa Guinigundo has said banks have room to lower lending rates to spur demand for borrowing after the BSP cut rates by a total 2 percentage points to 4% in an 8-month easing cycle that ended in August.