THE Bangko Sentral ng Pilipinas said that bank lending from universal and commercial banks (U/KBs) saw its rates growing at a faster pace this February.

At the same time, the domestic liquidity growth slowed.

Based on the data of the BSP, it showed that the banks' outstanding loans, excluding that of the central bank’s reverse repurchase facility, increased by 8.7%, up from the previous 7.8% increase in January.

Outstanding loans issued by U/KBs amounted to P11.6 trillion from P11.5 trillion in January and P10.6 trillion in February last year.

The central bank said outstanding loans to residents, net of RRPs, increased by 8.7% in February from 7.8% in the previous month, while outstanding loans to non-residents expanded by 6.5% after growing by 9.8% in January.

Likewise the loans being allotted for production activities increased to 6.8% from 5.9% in the previous month.

Also, the BSP noted that the increase was mainly driven by the higher lending to key sector such as real estate activities (11.6%); electricity, gas, steam, and airconditioning supply (11.2%); wholesale and retail trade, and repair of motor vehicles and motorcycles (7.1%); transportation and storage (21.1%); and manufacturing (5.9%).

They also underscored that the consumer loans to residents likewise saw an increase by 25.2% in February, the same rate as in January, on the sustained increase in credit card and motor vehicle loans.