Bank lending growth eases anew in November

Preliminary data show that growth of outstanding loans of universal and commercial banks, net of reverse repurchase (RRP) placements with the BSP, declined to 0.3 percent in November from 1.8 percent (revised) in October. On a month-on-month seasonally-adjusted basis, outstanding universal and commercial bank loans, net of RRPs, contracted by 0.3 percent. Bank lending growth waned during the month as the COVID-19 crisis continued to dampen consumer spending and business activity.

Loans for production activities, net of RRPs, grew by 0.5 percent in November from 2.0 percent in October as outstanding loans to key industries declined further, particularly wholesale and retail trade and repair of motor vehicles and motorcycles  (-6.0 percent) and manufacturing (-4.2 percent). Meanwhile, the following sectors contributed to the overall increase in production loans: real estate activities (5.2 percent); electricity, gas, steam, and air conditioning supply (2.7 percent); human health and social work activities (45.3 percent); transportation and storage (8.1 percent); and information and communication (6.5 percent).

Similarly, consumer loans grew at lower rate of 7.1 percent in November from 7.9 percent (revised) in October due largely to the slowdown in credit card loans and the continued contraction in motor vehicle loans during the month.

The BSP notes that its accommodative monetary policy stance, along with sustained fiscal initiatives to safeguard public welfare, should continue to support the economy’s gradual recovery in the coming months. Looking ahead, the BSP reassures the public of its commitment to deploy its full range of instruments as necessary to ensure sufficient liquidity and credit, in line with its mandate to promote non-inflationary and sustainable growth.


Stay updated with news and information from the Bangko Sentral ng Pilipinas by visiting their website at https://www.bsp.gov.ph.

Balikbayan Media Center
Balikbayan Media Center

Balikbayan Magazine's Media Center serves an audience in 60 countries and 101 cities throughout the World to ignite, drive, and fuel the economic development, progression, and modernisation of the Philippines. Our Media Center curates only the most critical, vital, useful, entertaining, and sometimes amusing information released from both the public and private sector. Our editorial team strongly believes that a well-rounded and well-informed society is a thriving society.

No Comments Yet

Leave a Reply

Your email address will not be published.

Spotlighting the growth, development, and progression of the Philippines since 2009. Balikbayan Magazine is a publication of the Asian Journal Media Group.

Copyright © 2009-2021 Asian Journal Media Group. All Rights Reserved.