Outstanding loans from universal and commercial banks (U/KBs) to businesses and individual consumers expanded in August.
Preliminary data show that loans from U/KBs[1] expanded at a slower rate of 11.2 percent year-on-year in August from 11.8 percent in July.
After adjusting for seasonal fluctuations, outstanding U/KB loans increased by 0.4 percent month-on-month in August.
Outstanding loans to residents[2] grew by 11.6 percent in August from 12.4 percent in July. Outstanding loans to non-residents[3] recorded a slower decline of 5.9 percent in August from an 8.1-percent decrease in the previous month.
Loans meant to fund business activities expanded by a slower pace of 9.9 percent in August from 10.8 percent in July. Lending increased for the following key industries: real estate activities (11.0 percent); electricity, gas, steam, and air-conditioning supply (28.1 percent); wholesale and retail trade, repair of motor vehicles and motorcycles (8.1 percent); financial and insurance activities (6.9 percent); and information and communication (7.5 percent).
Consumer loans to residents—which include credit card, motor vehicle, and general-purpose salary loans—increased by 23.9 percent from 23.6 percent.
The BSP monitors bank loans because they are a key transmission channel of monetary policy. Looking ahead, the BSP will ensure that domestic liquidity and bank lending conditions remain consistent with its price and financial stability mandates.