Preliminary data show that outstanding loans of universal and commercial banks (U/KBs), net of reverse repurchase (RRP) placements with the BSP, expanded at a slower pace of 10.4 percent year-on-year in January from 13.7 percent (revised) in December 2022.

On a month-on-month seasonally-adjusted basis, outstanding universal and commercial bank loans, net of RRPs, were broadly unchanged.

Outstanding loans to residents, net of RRPs, went up by 10.2 percent in January following a 13.5-percent (revised) increase in the previous month.

Outstanding loans for production activities grew by 9.2 percent in January from 12.4 percent (revised) in December, mainly due to the lending activities of major sectors including electricity, gas, steam and airconditioning supply (12.7 percent); wholesale and retail trade, repair of motor vehicles and motorcycles (10.4 percent); manufacturing (10.3 percent); information and communication (21.4 percent); and real estate activities (3.5 percent).

Likewise, consumer loans to residents grew by 20.3 percent in January from 25.1 percent (revised) in the previous month, driven by the faster year-on-year growth in credit card loans and salary-based general purpose consumption loan. Outstanding loans to non-residents expanded by 16.8 percent in January from a 19.9-percent (revised) increase in the previous month.

Brisk credit growth and adequate liquidity will continue to sustain the momentum of economic growth. Looking ahead, the BSP will ensure that liquidity and lending conditions remain in line with its primary mandate of ensuring price and financial stability. BSP