Bank lending rises in Sept.
11/18/2008 | 01:48 AM
MANILA, Philippines - Banks' loans grew by 24.8% in September from a year earlier as they raised lending to productive sectors, central bank data showed.
Outstanding loans by commercial banks, excluding placements in the central bank’s overnight lending or reverse repurchase facility, rose to P1.87 trillion in September.
In comparison, loans climbed by 22.1% to P1.83 trillion in August.
Including reverse repurchase agreements, loans expanded by 24.1% in September or at the same clip in August, totaling P2.05 trillion that month compared to P2.04 trillion a month earlier.
Amando M. Tetangco, Jr., Bangko Sentral ng Pilipinas governor, in a statement said the latest data on lending indicated there is sufficient liquidity in the economy to support economic growth, noting the tightness in global credit markets.
He added the central bank monitors banks’ lending activities in order to generate an advance indicator on the direction of future economic activity.
Data for September was obtained using the new system of financial reporting, which classifies loans into more economic sectors.
The central bank said banks lent more to productive sectors of the economy, as loans to these sectors grew by 22.4% in September compared to 19.8% in the previous month.
The sectors that increased loan availment were: transportation, storage and communication with 82.1% growth; electricity, gas and water, with 54.4%; wholesale and retail trade with 49.4%; agriculture, hunting and forestry with 37.8%; real estate, renting and business services with 15.4%; and manufacturing with 8.5%.
Lending to consumers also grew by 23.4%, higher compared to the 20.2% growth in August.
The growth in consumption loans was driven mostly by auto loans, which rose by 12.2% in September compared to 10.6% in August, as well as household loans, which grew by 29.6% from 4.6%.
Credit card receivables grew by 26.3%, but this was lower than the 27% growth in the previous month.
To ensure liquidity in the financial system, the central bank in October allowed banks to reclassify their financial assets in order to trim their mark-to-market losses.
Early this month, it delivered a two-percentage point cut on banks’ reserve requirement, or the portion of bank deposits that are required to be kept at central bank vaults. — G. S. dela Peña, BusinessWorld
Outstanding loans by commercial banks, excluding placements in the central bank’s overnight lending or reverse repurchase facility, rose to P1.87 trillion in September.
In comparison, loans climbed by 22.1% to P1.83 trillion in August.
Including reverse repurchase agreements, loans expanded by 24.1% in September or at the same clip in August, totaling P2.05 trillion that month compared to P2.04 trillion a month earlier.
Amando M. Tetangco, Jr., Bangko Sentral ng Pilipinas governor, in a statement said the latest data on lending indicated there is sufficient liquidity in the economy to support economic growth, noting the tightness in global credit markets.
He added the central bank monitors banks’ lending activities in order to generate an advance indicator on the direction of future economic activity.
Data for September was obtained using the new system of financial reporting, which classifies loans into more economic sectors.
The central bank said banks lent more to productive sectors of the economy, as loans to these sectors grew by 22.4% in September compared to 19.8% in the previous month.
The sectors that increased loan availment were: transportation, storage and communication with 82.1% growth; electricity, gas and water, with 54.4%; wholesale and retail trade with 49.4%; agriculture, hunting and forestry with 37.8%; real estate, renting and business services with 15.4%; and manufacturing with 8.5%.
Lending to consumers also grew by 23.4%, higher compared to the 20.2% growth in August.
The growth in consumption loans was driven mostly by auto loans, which rose by 12.2% in September compared to 10.6% in August, as well as household loans, which grew by 29.6% from 4.6%.
Credit card receivables grew by 26.3%, but this was lower than the 27% growth in the previous month.
To ensure liquidity in the financial system, the central bank in October allowed banks to reclassify their financial assets in order to trim their mark-to-market losses.
Early this month, it delivered a two-percentage point cut on banks’ reserve requirement, or the portion of bank deposits that are required to be kept at central bank vaults. — G. S. dela Peña, BusinessWorld
