Bank lending continued to expand in October, with credit extended by universal and commercial banks (U/KBs) posting a 10.3 percent year-on-year increase, the Bangko Sentral ng Pilipinas (BSP) reported Thursday night.

In its latest data release, the BSP said the October growth pace was slightly slower than the 10.5 percent increase recorded in September.

On a month-on-month seasonally adjusted basis, outstanding U/KB loans rose by 0.6 percent.

Lending to resident borrowers grew steadily by 10.9 percent, while loans to non-residents contracted further by 11.1 percent, widening from the 2.9 percent decline in the previous month.

Credit for production activities expanded by 9.1 percent, with several major industries posting higher borrowing during the period.

These include real estate (9.9 percent); electricity, gas, steam, and air-conditioning supply (24.8 percent); wholesale and retail trade, repair of motor vehicles and motorcycles (11.7 percent); financial and insurance activities (8.5 percent); information and communication (8.2 percent); and transportation and storage (13 percent).

Consumer loans to residents, comprising credit card, motor vehicle, and salary-based loans, grew by 23.1 percent, slightly slower than the 23.5 percent expansion in September.

The BSP said it continues to monitor bank lending as it remains a critical channel for transmitting monetary policy. It added that it will ensure liquidity and credit conditions remain aligned with its price and financial stability objectives. 

BSP PHOTO