Outstanding loans of universal and commercial banks, net of reverse repurchase placements with the Bangko Sentral ng Pilipinas, decreased 4.5 percent year-on-year in March, following a 2.7-percent fall in February.
The BSP said on a month-on-month seasonally-adjusted basis, outstanding universal and commercial bank loans, net of RRPs, declined 0.12 percent. “Credit activity remained tepid on banks’ tighter lending standards as a resurgence in coronavirus cases dampened the domestic economic outlook,” it said.
Consumer loans to residents dropped by 9.9 percent in March after an 8.3-percent contraction in February mainly on lower credit card and motor vehicle loans. Outstanding loans to major industries also decreased, particularly to wholesale and retail trade and repair of motor vehicles and motorcycles (-9.7 percent), manufacturing (-5.5 percent) and financial and insurance activities (-5.1 percent).
Meanwhile, domestic liquidity grew by 8.3 percent year-on-year to about P14.2 trillion in March, slower than the 9.4-percent expansion in February.