Wednesday, December 16, 2015

Real estate contributes to surge in bank lending

Commercial banks saw quite an uptick of activity in September triggering a surge of demand for loans.
Outstanding loans, excluding reverse repurchase placements (RRP) with the Bangko Sentral ng Pilipinas (BSP), rose to 13.9 percent in October from 12.6 percent (revised) in September.
With RRPs included, figures differ but still exhibited a rise of 13.6 percent in October from 12.4 percent in September.
The September to October growth may be attributed to increase in loan for production activities, which composed more than 80.0 percent of total bank loan portfolio.

The general uptrend was apparent as month-on-month comparison revealed commercial bank loans increasing by 2.2 percent and 2.0 percent, net and inclusive of RRPs, respectively.
Other sectors posted positive figures as well, except for electricity, gas, steam and air-conditioning supply at 28.4 percent; wholesale and retail trade, and repair of motor vehicles and motorcycles at 13.7 percent; financial and insurance activities at 14.7 percent; and professional, scientific and technical activities at 9.6 percent (decrease).
Overall loans increased by 14.4 percent from 13.2 percent. The construction and real estate sectors largely contributed to the swelling demand posting 26.9 and 22.4 percent. Personal loans for household consumption, credit card loans, and auto loans, aggregately rose by 12.8 percent from 12.7 percent the prior month.
As the country foresees economic growth, the BSP assures the public that domestic credit and liquidity will keep up at the same time maintaining price and financial stability.


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