Bank lending expands by 13.4% in December 2022

Bank lending expanded by 13.4 percent in December 2022 compared to the same month in 2021, the Bangko Sentral ng Pilipinas said on Tuesday citing preliminary data.

The BSP said the amount of outstanding loans of universal and commercial banks, net of reverse repurchase (RRP) placements with the BSP, was slightly slower than the growth rate of 13.9 percent (revised) in November.

licit trade and Customs fraud.

Ruiza said the improvement of trade facilitation and increasing lawful revenue collection is also in line with the directives of President Ferdinand R. Marcos Jr. (PNA)

“On a month-on-month seasonally-adjusted basis, outstanding universal and commercial bank loans, net of RRPs, also decreased marginally by 0.04 percent,” the BSP said.

Loans for production activities expanded by 12.1 percent in December driven largely by borrowing for real estate activities, manufacturing, electricity, gas, steam and airconditioning supply, wholesale and retail trade, repair of motor vehi- cles and motorcycles, and information and communication.

Consumer loans also rose by 24.8 percent in December from 24.2 percent (revised) in the previous month, reflecting the faster year-on-year growth in motor vehicle loans.

“The sustained growth in credit activity and ample liquidity will continue to support the recovery of economic activity and domestic demand. Looking ahead, the BSP will ensure that liquidity and credit conditions are in line with its primary mandate of promoting price and financial stability,” the central bank said.

Last year, the BSP began tightening monetary policy, raising its benchmark rate from a record low of 2 percent to a 14-year high of 5.5 percent, as it tried to tame inflation.

The BSP is expected to raise interest rates again in its next policy-setting meeting next month.