Preliminary data show that outstanding loans of universal and commercial banks (U/KBs), net of reverse repurchase (RRP) placements with the BSP, expanded anew at a slightly quicker rate of 8.9 percent year-on-year in March from 8.8 percent in February, marking the eighth consecutive months of expansion.

On a month-on-month seasonally-adjusted basis, outstanding universal and commercial bank loans, net of RRPs, went up by 0.2 percent. Lending activity has gained further traction as the country’s improved COVID-19 caseload continues to support market confidence.

Outstanding loans to residents, net of RRPs, also increased by 8.9 percent in March from 8.8 percent in February as loans for production activities continue to expand.

Outstanding loans for production activities rose by 9.5 percent in March from 9.7 percent in February due to the increase in lending for real estate activities (19.7 percent); information and communication (28.4 percent); manufacturing (10 percent); wholesale and retail trade, repair of motor vehicles and motorcycles (8.7 percent); and financial and insurance activities (6.2 percent).

Similarly, consumer loans to residents went up by 3.6 percent in March after a 0.9-percent increase in February with the year-on-year rise in credit card loans.

Outstanding loans to non-residents also went up by 9.5 percent in March from 7.3 percent in the previous month.

The BSP continues to see scope to safeguard the momentum of economic recovery amid increased uncertainty over the outlook for growth and inflation. Moving forward, the BSP stands ready to take appropriate preemptive action as needed in ensuring non-inflationary and sustainable growth in line with our primary mandate to promote price and financial stability. BSP