Bank loans grew at a faster rate in December on higher credit demand amid the improving economic outlook, the Bangko Sentral ng Pilipinas said Monday.
Preliminary data showed outstanding loans of universal and commercial banks, net of reverse repurchase placements with the BSP, increased 4.6 percent year-on-year in December, faster than the 4.0-percent rise in November.
“Credit activity continued to improve due to a more favorable economic outlook from businesses and households amid the sustained rollout of COVID-19 vaccines and the easing of community restrictions during the month,” the BSP said in a statement.
It said that on a month-on-month seasonally-adjusted basis, outstanding universal and commercial bank loans, net of RRPs, gained 0.4 percent.
Outstanding loans to residents, net of RRPs, increased 4.7 percent in December from 4.1 percent in the previous month, on faster growth in loans for production activities.
Outstanding loans for production activities went up by 5.8 percent in December, compared to 5.4 percent in November on continued rise in lending for real estate activities (9.1 percent); information and communication (27.3 percent); manufacturing (9.4 percent); financial and insurance activities (9.9 percent); and transportation and storage (9.1 percent).
Meanwhile, consumer loans to residents declined at a softer rate of 5.7 percent in December from a 7.1-percent decrease in November amid the year-on-year rise in credit card loans.
Outstanding loans to non-residents went up by 2.5 percent in December from 0.4 percent in November.
The BSP said that it would continue to monitor credit dynamics to ensure that its monetary policy settings remain appropriate amid signs of economic recovery, consistent with its price and financial stability mandates.
The gross domestic product expanded by 5.6 percent in 2021, as the BSP kept the benchmark interest rates unchanged at record low levels.