- Published on Thursday, 13 December 2012 20:17
- Written by Jun Vallecera / Reporter
Bank-loan growth
moderating in September to only 13.5 percent from 14 percent in August
picked up speed again in October when loan growth averaged 15.8 percent.
According to the
Bangko Sentral ng Pilipinas (BSP), the low-interest rate regime seen
persisting over the next two years has encouraged businesses and
households to engage in more consumption activities such as more
frequent use of credit cards and the purchase of big-ticket items like
cars.
The numbers translate
to loans totaling P3.08 trillion in October from P3.0 trillion a month
before and validate public sector claims loan activities have
accelerated as interest rates ease and money supply expands.
A separate BSP
document show domestic liquidity having similarly accelerated in
September when money supply grew by 8.6 percent from only 7.5 percent in
August.
The BSP said
production loan growth benefited wholesalers and retailers as bank loans
to the sector increased by 46.5 percent during the period.
Lending to real
estate, renting and business services grew by 28.6 percent; financial
intermediation by 31.8 percent; manufacturing by 14.6 percent;
transportation, storage and communication by 28.2 percent, public
administration and defense by 49.3 percent and electricity, gas and
water by 13.8 percent.
Bank loans extended to
mining and quarrying fell by 39.4 percent while lending to agriculture,
hunting and forestry fell by another 45.7 percent.
Production loans
account for the bulk or 80 percent of total lending, the pace of lending
to the sector having accelerated by 16.4 percent in October from only
13.9 percent the previous month.
The BSP said earlier policy rate adjustments were to favor more lending down the line as interest rates fall.
So-called production loans already accelerated and grew by 16.4 percent in October from 13.9 percent in September.
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