Banks' lending further expanded in November ‘11

January 10, 2012 11:28 pm 

MANILA, Jan. 10 – Outstanding loans of Philippine commercial banks (KBs), excluding their placements in central bank’s reverse repurchase (RRP) facility, grew in November 2011, but contracted when RRP placements were included.

Data released by the Bangko Sentral ng Pilipinas (BSP) on Tuesday showed that net of RRP placements, bank lending expanded by 22.5 percent from the preceding month’s 22.2 percent, while including RRPs, it dropped by 19.3 percent from month-ago’s 21.1 percent.

BSP Governor Amando Tetangco Jr. cited that KB loans have been posting double-digit growth since January last year.

Production loans, which account for more than four-fifths of banks’ total loan portfolio, went up by 23.4 percent against month-ago’s 23.1 percent.

Lending to electricity, gas and water posted the highest growth at 57.3 percent, followed by 46.6 percent growth of loans extended to the wholesale and retail trade and the 33.7 percent in financial intermediation.

Loans to real estate, renting and business services expanded by 28.4 percent; transportation, storage, and communication, 26.9 percent; construction, 26 percent; and manufacturing, 24.9 percent.

Tetangco said lending to the mining and quarrying industry continued its three-digit expansion rate since last May on account of robust global demand, which in turn boosted world mineral prices and domestic mining output.

Meanwhile, consumer loans slowed to 18.1 percent from last October’s 20.2 percent, “mainly reflecting the slower growth in credit card lending.”

The central bank chief said “robust credit expansion should held the domestic economy in the midst of subdued global growth prospects.”

“Looking ahead, the BSP will continue to monitor economic developments to ensure that monetary policy settings remain supportive of domestic economic activity consistent with the price stability objective,” he added. (PNA) DCT/scs/JS/utb


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