DOMESTIC liquidity or the money supply in the financial system grew 14 percent year-on-year to about P10.4 trillion in November, slower than the 14.8-percent expansion a month ago, Bangko Sentral ng Pilipinas said Friday.
“The growth in M3 remains broadly consistent with the BSP’s prevailing outlook for inflation and economic activity. The BSP will continue to monitor monetary conditions closely to ensure that domestic liquidity stays adequate to support price and financial stability,” the regulator said.
Domestic claims rose 14.7 percent in November, lower than the 15.2-percent increase in October as growth in credit to the private sector eased to 16 percent from 16.5 percent in the previous month.
“Growth in bank loans continued to be driven by lending to key production sectors such as real estate; electricity, gas, steam and air-conditioning supply; wholesale and retail trade, repair of motor vehicles and motorcycles; financial and insurance activities; manufacturing and information and communication,” it said.
Net foreign assets in peso terms increased 1.9 percent year-on-year in November from 6.1 percent in the previous month. The Bangko Sentral’s NFA position declined during the month, reflecting the decrease in gross international reserves.
Outstanding loans of commercial banks, net of reverse repurchase placements with the BSP, expanded at a slower rate of 19.2 percent in November from 19.9 percent in October.
Loans for production activities, which comprised 88.4 percent of banks’ aggregate loan portfolio, rose albeit at a slower rate of 18.5 percent in November from 18.7 percent in October.
The growth in production loans was driven by increased lending to real estate activities, 18.3 percent; electricity, gas, steam and air-conditioning supply, 24.2 percent; wholesale and retail trade, 18.5 percent; financial and insurance, 23.1 percent; manufacturing, 11.5 percent; and information and communication, 31.4 percent.
Growth in loans for household consumption slowed to 20.6 percent in November from 23.4 percent in October. The acceleration in the growth in credit card loans was offset by the slower increase in motor vehicle loans and salary-based general purpose loans as well as the decline in other types of household loans.