Preliminary data show that outstanding loans of universal and commercial banks (U/KBs), net of reverse repurchase (RRP) placements with the BSP, grew by 12.2 percent year-on-year in August, faster than the 12 percent increase in the previous month.

On a month-on-month seasonally-adjusted basis, outstanding universal and commercial bank loans, net of RRPs, rose by 1.3 percent.

Outstanding loans to residents, net of RRPs, went up by 12.1 percent in August from an expansion of 11.9 percent in July.

Meanwhile, outstanding loans for production activities accelerated by 11.5 percent in August from a growth rate of 11.6 percent in July, driven largely by the continued rise in credit for real estate activities (13.9 percent); manufacturing (15.9 percent); information and communication (28.6 percent); wholesale and retail trade, repair of motor vehicles and motorcycles (9.7 percent); and electricity, gas, steam and air conditioning supply (9.0 percent).

Similarly, consumer loans to residents grew faster by 18.3 percent in August from 14.7 percent in July driven by the year-on-year rise in credit card loans, motor vehicle loans, and salary-based general purpose consumption loans. At the same time, outstanding loans to non-residents expanded by 16.3 percent in August following a 14.6-percent increase in the previous month.

The sustained expansion in credit activity and ample liquidity will continue to support the recovery of economic activity and domestic demand. Looking ahead, the BSP reiterates its commitment to ensure that liquidity and lending conditions remain in line with the BSP's price and financial stability mandates. BSP