Lending growth slows in March

Preliminary data show that outstanding loans of commercial banks, net of reverse repurchase (RRP) placements with the BSP, expanded at a slower rate of 18.3 percent in March from 19.5 percent in February.

The growth of bank lending inclusive of RRPs accelerated to 18.8 percent in March from 17.6 percent in the previous month. On a month-on-month seasonally-adjusted basis, commercial bank loans net of RRPs and loans inclusive of RRPs increased by 1.0 percent and 1.9 percent, respectively.

Loans for production activities—which comprised 88.4 percent of banks’ aggregate loan portfolio, net of RRP — grew at a slightly slower pace of 18.1 percent in March from 18.6 percent in the previous month. The growth in production loans was driven primarily by increased lending real estate activities (18.6 percent); electricity, gas, steam and airconditioning sup- ply (23.7 percent); wholesale and retail trade, repair of motor vehicles and motorcycles (17.6 percent); manufacturing (11.1 percent); financial and insurance activities (17.1 percent); other community, social and personal activities (83.1 percent); and, information and communication (27.9 percent).

Bank lending declined in agriculture, forestry and fishing (-8.0 percent), and administrative and support services activities (-37.9 percent).

The growth in loans for household consumption marginally slowed down to 19.3 percent in March from 19.9 percent in February. /