Preliminary data show that outstanding loans of universal and commercial banks (U/KBs), net of reverse repurchase (RRP) placements with the BSP, grew at a faster rate of 10.1 percent year-on-year in April from 8.9 percent in March, 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, went up by 0.9 percent.

Credit conditions continue to improve as economic activity rebounds amid a manageable domestic COVID-19 caseload.

Outstanding loans to residents, net of RRPs, also went up by 10 percent in April from 8.9 percent in March given the continued expansion in loans for production activities.

Outstanding loans for production activities increased by 10.3 percent in April from 9.4 percent (revised) in March driven by the rise in loans for real estate activities (18.7 percent); manufacturing (12.4 percent); information and communication (26.9 percent); wholesale and retail trade, repair of motor vehicles and motorcycles (7.5 percent); and financial and insurance activites (8.7 percent).

Likewise, growth in consumer loans to residents accelerated to 6.7 percent in April from 3.6 percent in March with the year-on-year increase in credit card loans and salary-based general purpose consumption loans.

Outstanding loans to non-residents likewise expanded at a faster rate of 13.5 percent in April from 9.4 percent (revised) in March.

A steady improvement in overall credit activity and stable financial market conditions have allowed the BSP to continue rolling back its pandemic-induced liquidity interventions.

Looking ahead, the BSP will continue to watch closely evolving credit and liquidity conditions to ensure that appropriate level of liquidity is available to nurture the momentum of economic recovery, while containing inflation pressures. BSP