Real Estate Loans Reach P2.18 Trillion
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Loading... - Elyas Chesa
- 19 May 2023
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Bank lending experienced a substantial growth in March 2023, driven by economic activities in the real estate sector and consumer loans, as stated in a report by BusinessMirror. The data, sourced from the Bangko Sentral ng Pilipinas, reveals that bank lending increased by 10.1 percent, reaching P10.762 trillion in March 2023 compared to P9.777 trillion in March 2022.
Out of the total loans extended, P9.397 trillion were allocated for various economic activities, while consumer loans amounted to P1.052 trillion. The Bangko Sentral ng Pilipinas emphasized that the continuous credit growth is supported by the stable conditions of the Philippine banking system. Looking ahead, the BSP will vigilantly monitor the dynamics of domestic liquidity to ensure that credit conditions align with its objectives of maintaining price stability and financial stability.
According to BSP data, loans extended for real estate activities reached P2.18 trillion, making it the highest category, followed by Wholesale & Retail Trade, Repair of Motor Vehicles and Motorcycles with loans amounting to P1.25 trillion, and Electricity, Gas, Steam & Air-conditioning Supply with loans totaling P1.175 trillion.
Regarding growth rate, outstanding loans for production activities witnessed an increase of 8.9 percent in March, up from 8.7 percent in February. This growth was primarily driven by a sustained rise in credit to major industries such as electricity, gas, steam, and air conditioning supply (12.5 percent); wholesale and retail trade, and repair of motor vehicles and motorcycles (10.5 percent); financial and insurance activities (13.1 percent); manufacturing (9.1 percent); and real estate activities (4.2 percent).
In terms of consumer loans, credit card loans accounted for P570.359 billion, followed by Motor Vehicle Loans at P334.408 billion, Salary-Based General Purpose Consumption Loan at P123.825 billion, and other loans at P23.728 billion. Consumer loans to residents experienced a 21.3 percent increase in March, maintaining the same growth rate as the previous month, driven by expansion in credit card, motor vehicle, and salary-based general purpose consumption loans.
BSP also noted that outstanding loans to non-residents grew by 12.6 percent in March, compared to 14.8 percent in the previous month.
Meanwhile, domestic liquidity (M3) in March 2023 reached approximately P16.2 trillion, registering a 6 percent year-on-year growth. This expansion aligns with the growth rate recorded in the previous month. On a month-on-month seasonally-adjusted basis, M3 increased by approximately 0.2 percent. The BSP will continue to ensure that domestic liquidity conditions remain consistent with the current monetary policy stance, in line with its objectives of maintaining price stability and financial stability.
Domestic claims experienced a 12.4 percent year-on-year increase in March, up from 11.6 percent in the previous month. The growth in claims on the private sector amounted to 9.6 percent in March, compared to 9.9 percent in February, driven by the continued expansion in bank lending to non-financial private corporations and households. Net claims on the central government also rose by 21.4 percent in March, following a 17.5 percent revision in February. This increase was attributed to the decrease in deposits by the National Government with the BSP.
On the other hand, net foreign assets (NFA) in peso terms declined by 4.2 percent year-on-year in March, continuing the 3.1 percent contraction observed in February. The reduction in NFA of banks was mainly influenced by higher bills payable. Similarly, the BSP's NFA position decreased by 0.9 percent in March.
