First Semester; Bank Lending Grows 14.9% – BSP

The banking industry's total outstanding loans grew 14.9 percent to P2.95 trillion at the end of the first semester, faster than the pace of growth recorded in May, the Bangko Sentral ng Pilipinas (BSP) said in a monthly report.

Including reverse repurchase (RRP) placements of banks with the BSP, lending activities slowed during the period, increasing 12.2 percent from 13.6 percent in the previous month. With RRP, total lending reached P3.17 trillion.

BSP Deputy Governor Nestor A. Espenilla Jr. said that while he does not expect bank lending to grow as robust as the past two years, he thinks the industry's 10 percent to 15 percent average growth for bank loans this year is "reasonable." However as a bank regulator, he would rather not give a forecast at the moment, saying only that 10 percent to 15 percent is a "good projection" range for this year.

The low interest rate environment is one of the concerns for the banking community and its impact on lending rate. The BSP overnight borrowing rate is now below four percent at 3.75 percent and 5.75 percent for overnight lending. Rates on term deposits and placements were also reduced.

At the of June, BSP reported that loans for production activities comprising bulk of total outstanding loans, expanded 15.1 percent to P2.714 trillion compared to the 14.7 percent growth in May.

Consumer loans, in the meantime, recorded a growth of 15.8 percent in June, slower compared to what was reported the previous month of 16.8 percent. In total value, consumer loans under household consumption category amounted to P238.48 billion. These are credit card, automotive loans and "other" loans, totaling P136 billion, P76.66 billion and P25.76 billion, respectively.

In the statement, the central bank said the growth in production loans was pushed by increased lending in the wholesale and retail trade which grew by 42.4 percent to P413.97 billion, real estate, renting, and business services that rose 27.1 percent to P508.2 billion and manufacturing which went up by 25.1 percent to P524.37 billion.

Loans for financial intermediation, on the other hand, increased 24.4 percent to P282.5 billion while transportation, storage, and communication loans grew 31.2 percent to P226.18 billion.

According to the BSP, "the continued growth in bank lending underpins the (central bank's) view that domestic demand remains firm and would lend support to the economy amid weakening global economic conditions."

"The BSP will continue to monitor liquidity conditions to ensure that credit activity remains supportive of overall economic growth while remaining consistent with the BSP's price stability objective," it added.

Loading...

Editor’s note:Yahoo Philippines encourages responsible comments that add dimension to the discussion. No bashing or hate speech, please. You can express your opinion without slamming others or making derogatory remarks.

  • No apology, but Noy seeks understanding
    No apology, but Noy seeks understanding

    There was no apology, but President Aquino yesterday expressed regret, took “full responsibility” and appealed to the nation for “deepest understanding” for the Jan. 25 Mamasapano raid in which dozens died, including 44 police Special Action Force (SAF) commandos. “To every Filipino who has felt failure or has been hurt because of the events related to this operation, it is with abiding humility that I ask for your deepest understanding,” Aquino said in a speech before the 246 new graduates of …

  • MVP on endorsement: Thanks, I’m no politician
    MVP on endorsement: Thanks, I’m no politician

    Businessman Manuel V. Pangilinan is grateful for Sen. Miriam Defensor-Santiago’s praise and presidential endorsement, but says he is not a politician. In an interview on the sidelines of the launch of the search for The Outstanding Young Men (TOYM) of the Philippines 2015 Wednesday night, Pangilinan dismissed the idea of running for president in the 2016 elections. “I’m not a politician, I’m just an ordinary business person,” he added. Santiago endorsed Pangilinan as a presidential candidate …

  • No Lenten break in operations vs lawless groups – AFP
    No Lenten break in operations vs lawless groups – AFP

    The Armed Forces of the Philippines (AFP) is not suspending its offensive against the Abu Sayyaf, New People’s Army (NPA) and other lawless groups during the Holy Week, an official said yesterday. Lt. Col. Harold Cabunoc, AFP public affairs office chief, said the AFP leadership is leaving it up to area and division commanders whether to raise the alert status in preparation for the Holy Week. Those deployed in areas where there are ongoing law enforcement operations against terrorist groups …

  • Probe harassment vs human rights lawyer, CA orders AFP
    Probe harassment vs human rights lawyer, CA orders AFP

    The Court of Appeals (CA) has ordered the Armed Forces of the Philippines (AFP) to investigate a human rights lawyer’s claim of harassment, including surveillance, by several military officers. In a 22-page decision, the former Special Sixth Division of the appellate court granted the petition for writ of amparo and habeas data of Maria Catherine Dannug-Salucon. The CA ordered the AFP to identify the officers behind the surveillance and file charges against them. The CA ruling said …

  • Noy vows to dismantle bata-bata system in PNP
    Noy vows to dismantle bata-bata system in PNP

    President Aquino vowed yesterday to dismantle the culture of factionalism or the bata-bata system within the Philippine National Police as he continued the search for the next PNP chief. Speaking at the Philippine National Police Academy (PNPA) commencement exercises here, the President said the country needed solidarity among leaders and members of the police force so that the policemen would be effective protectors of Filipinos. “Our challenge to the next chief of our national police force: …

  • Envoy to expats: Retire, invest in Phl
    Envoy to expats: Retire, invest in Phl

    Retire and invest in real estate in the Philippines, especially now that the country has made it to the top 10 retirement destinations in the world. This is the message being spread by the Philippine embassy in Washington, with Ambassador Jose Cuisia Jr. leading the refrain in meetings with various Filipino-American communities in the US. In his talks, Cuisia said that an affordable cost of living as well as warm climate and people are just some of the things that make the Philippines a top …

  • PNPA spotlight falls on Ampatuan grandson
    PNPA spotlight falls on Ampatuan grandson

    The stigma of being a namesake of the principal suspect in the 2009 Maguindanao massacre did not prevent Cadet First Class Andal Ampatuan III from entering and graduating from the Philippine National Police Academy (PNPA). Ampatuan III, now with a rank of police inspector, is a grandson of former Maguindanao governor Andal Ampatuan Sr. The younger Ampatuan was among the 246 graduates of the PNPA “Lakandula” Class of 2015. Ampatuan III’s mother is Bai Rebecca Ampatuan, a daughter of the …

  • Southwest transport terminal construction start still in limbo

    The construction of the country’s first intermodal transport facility is in limbo as both the government and the winning private concessionaire are waiting on each other before finally pushing through with the contract signing. Transportation Secretary Joseph Emilio Abaya said the ongoing titling of the project site for the R2.5-billion Integrated Transport System (ITS) Southwest Terminal should not delay the concession agreement signing, which has been indefinitely postponed since February …

POLL

Should Aquino be held accountable over the Mamasapano operations?

Loading...
Poll Choice Options