Finance


Bank lending grows faster




Posted on November 12, 2011


BANK LENDING grew at a faster clip in September as businesses tapped loans to finance projects, the Bangko Sentral ng Pilipinas (BSP) reported on Friday.

Latest central bank data showed lending by universal and commercial banks net of bank placements in the BSP, or reverse repurchase agreements, rose by 21.7% to P2.645 trillion from a year earlier. It was faster than the 19.8% annual jump in August.

Bank lending, including placements with the BSP, meanwhile, grew by an annual 18.9% to P2.853 trillion for the month due to higher loans for "production activities," slower than the 24.8% annual growth in August.

"Stable financial conditions and the continued solid growth prospects of the domestic economy were reflected in the credit expansion during the month," the BSP said in a statement.

"Commercial banks’ loans have been growing steadily at double-digit growth rates since January 2011."

Loans for production activities comprised more than four-fifths of the total loan portfolio, gaining by 22.9% in September from 21.5% in the previous month.

Growth in consumer loans accelerated to 17.9% from 13.4% on lending across all types og household loans. Lending continued to grow for electricity, gas and water (56.3%); manufacturing (24.2%); real estate, renting and business service (26.1%); wholesale and retail trade (29.8%); financial intermediation (32.8%); transportation, storage and communication (19.3%); and construction (17.6%).

"With strong global demand driving growth in the mining and quarrying industry, loans to mining and quarrying more than tripled in September (342.1%) from a year ago, sustaining the three-digit growth rate since May 2011," the BSP said.

But lending contracted in health and social work (4.9%), education (10%) and agriculture, hunting and forestry (3.5%).

"Going forward, the monetary authorities will continue to ensure that credit conditions support the achievement of the BSP’s price stability objective while providing for the funding requirements of the economy," the BSP said. -- NJCM