Category : Press Release
Date : July 30, 2021
Agency : Bangko Sentral ng Pilipinas
Title : Bank Lending Falls Anew But at Slower Rate by 2.0 Percent, Year-on-Year, in June
Article : ?Preliminary data show that outstanding loans of universal and commercial banks (U/KBs), net of reverse repurchase (RRP) placements with the BSP, decreased by 2.0 percent year-on-year in June after declining by 4.0 percent in the previous month. On a month-on-month seasonally-adjusted basis, outstanding universal and commercial bank loans, net of RRPs, went up by 1.1 percent.

Outstanding loans to residents, net of RRPs, fell by 1.4 percent (from 3.5 percent contraction in May) while outstanding loans to non-residents (1) decreased by 19.7 percent (from 18.8 percent decline last month), as concerns over the spread of new coronavirus variants continued to temper market sentiment and the outlook for economic recovery.

Consumer loans to residents went down by 8.6 percent in June from a 9.2-percent decrease in May as motor vehicle loans and salary-based consumption loans declined further.

Likewise, outstanding loans to major industries continued to fall but at a slower rate, attributed mainly to wholesale and retail trade and repair of motor vehicles and motorcycles (-6.2 percent) and manufacturing (-5.8 percent). The contraction in outstanding loans to these key sectors was partly moderated by the growth in loans to real estate activities (4.8 percent), information and communication (9.1 percent), electricity, gas, steam, and air conditioning supply (2.2 percent), and transportation and storage (6.8 percent). On balance, total outstanding loans for production activities, net of RRPs, posted a lower contraction by 0.6 percent in June from a 2.9-percent fall in May.

Looking ahead, the BSP shall continue to provide monetary policy support in order for the economic recovery to gain further traction. At the same time, the National Government’s targeted fiscal initiatives and accelerated vaccination program remain critical in helping to restore market confidence and strengthening the recovery process.

-------------------------------

1 Outstanding loans to non-residents include loans by UKB’s foreign currency deposit units (FCDUs) to non-residents.

View Table - https://www.bsp.gov.ph/Media_And_Research/Media%20Releases/2021_07/news-07302021a1.aspx