(CNN Philippines) — Outstanding loans, excluding reverse repurchase placements (RRP) with the central bank, grew slower in April compared to the previous month, according to figures from the Bangko Sentral ng Pilipinas (BSP).
April’s slowed, albeit double-digit growth of 14.8% falls slightly below the bank’s revised 15.7% expansion in March. In a statement, the BSP also said that commercial bank lending increased by 0.8% for loans both net and gross of RRPs, on a month-on-month seasonally-adjusted basis.
More than 80% of banks’ aggregate loan portfolio came from loans for production activities. The index expanded by 15.1% in April, compared to the revised 15.9% growth in March.
The BSP said that the growth was buoyed by increased lending in the following sectors:
manufacturing: 15.2%
real estate, renting, and business services: 12.5%
wholesale and retail trade: 14.4%
electricity, gas, and water: 16.3%
financial intermediation: 16%.
Bank lending to other sectors also grew in April.
Lending for household consumption picked up pace in April compared to March, buoyed by continued growth in credit card loans, auto loans, and other types of loans such as salary loans and personal loans. The index eked out a 20.1% growth rate for April compared to the previous month’s 19.8 percent revised figure.
Another BSP report revealed that bank lending standards — the guidelines which banks use to determine potential borrowers’ credit worthiness — remained broadly unchanged during the first three months of the year for enterprise and household loans.
That results mark the 23rd consecutive quarter since Q2 2009 that majority of banks reported broadly unchanged lending standards.
The BSP expects the the continued growth in lending, particularly to productive sectors, to support sustainable levels of economic growth.
“Going forward, the BSP will continue to ensure that domestic credit and liquidity conditions will keep pace with overall economic activity while remaining consistent with its price and financial stability objectives.”
