Domestic liquidity or the money supply circulating in the financial system expanded 16.2 percent in April, while bank loans increased at a slower rate from the previous month because of the constrained economic activity following the Luzon-wide lockdown.
Preliminary data show that domestic liquidity or MR expanded by 16.2 percent year-on-year to about P13.6 trillion in April. This was faster than the 13.3-percent expansion in March. On a month-on-month seasonally-adjusted basis, M3 increased by 3.7 percent.
“Demand for credit remained the principal driver of money supply growth. Domestic claims rose by 15.0 percent in April from 11.9 percent in March due mainly to the sustained growth in credit to the private sector,” the BSP said in a statement.
Outstanding loans of universal and commercial banks, net of reverse repurchase placements with the BSP, managed to grow 12.7 percent in April, slower than the 13.6-percent expansion in March. On a month-on-month seasonally-adjusted basis, commercial bank loans net of RRPs grew by 0.7 percent.
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