Preliminary data show that outstanding loans of universal and commercial banks (U/KBs), net of reverse repurchase (RRP) placements with the BSP, grew by 13.4 percent year-on-year in December, slightly slower than the growth rate of 13.9 percent (revised) in November, the Bangko Sentral ng Pilipinas (BSP) said Tuesday.

On a month-on-month seasonally-adjusted basis, outstanding universal and commercial bank loans, net of RRPs, also decreased marginally by 0.04 percent.

Outstanding loans to residents, net of RRPs, rose by 13.2 percent in December after a 13.6-percent (revised) increase in the previous month.

Outstanding loans for production activities expanded by 12.1 percent in December from a 12.6-percent (revised) rise in November driven largely by the credit growth of key industries such as real estate activities (13.1 percent); manufacturing (14.9 percent); electricity, gas, steam and airconditioning supply (14.4 percent); wholesale and retail trade, repair of motor vehicles and motorcycles (12.7 percent); and information and communication (21.6 percent).

Similarly, consumer loans to residents rose by 24.8 percent in December from 24.2 percent (revised) in the previous month, reflecting the faster year-on-year growth in motor vehicle loans.

Outstanding loans to non-residents expanded by 20 percent in December after increasing by 24.6 percent (revised) in the previous month.

The sustained growth in credit activity and ample liquidity will continue to support the recovery of economic activity and domestic demand. Looking ahead, the BSP will ensure that liquidity and credit conditions are in line with its primary mandate of promoting price and financial stability. BSP