HIGH interest rates caused outstanding loans extended by universal and commercial banks (U/KBs) to slow down in July 2023, according to the Bangko Sentral ng Pilipinas (BSP).
Data showed outstanding loans, net of reverse repurchase (RRP) placements with the BSP, expanded 7.7 percent year-on-year in July from 7.8 percent in June.
On a month-on-month seasonally-adjusted basis, outstanding universal and commercial bank loans, net of RRPs, rose by 0.6 percent, the same rate posted in the previous month.
“The growth in bank lending has continued to ease in line with the prevailing tight monetary policy stance of the BSP. Looking ahead, the BSP will continue to ensure that domestic liquidity and credit dynamics remain consistent with its price and financial stability objectives,” BSP said.
The data showed the growth of outstanding loans to residents, net of RRPs, slowed to 7.7 percent in July from 7.9 percent in June.
The increase in outstanding loans for production activities slowed to 6.2 in July after posting a growth of 6.3 percent in the previous month. “[This was] due to the continued increase in loans to major sectors, particularly electricity, gas, steam, and airconditioning supply [10.6 percent],” BSP said.
The central bank also said wholesale and retail trade, and repair of motor vehicles and motorcycles, posted a growth of 9.4 percent; real estate activities, 5 percent; information and communication, 10.8 percent; and transportation and storage, 14.9 percent.
Further, consumer loans to residents grew by 22.6 percent in July versus 23.7 percent in June, driven mainly by the increase in credit card and motor vehicle loans.
Outstanding loans to non-residents rose by 6.2 percent in July from 4.8 percent in the previous month.
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