Bank lending accelerates to P2.244T in Nov. 2010 — BSP

The strong momentum for domestic economic activity drove the banking sector's lending growth to accelerate in November last year, the Bangko Sentral ng Pilipinas (BSP) said Friday. Central bank data showed that bank loans reached P2.244 trillion as of end-November last year, up 9 percent from the P2.059 trillion recorded in the same period in 2009. "The sustained growth in bank lending suggests that the momentum of the domestic economic activity remains strong," BSP Gov. Amando Tetangco Jr. said in a statement. The soundness of the country's banking system is characterized by an increasing deposit base, steady profitability, adequate capitalization, solid asset quality, and low non-performing loan ratios. Tetangco said that the central bank will continue to ensure that the domestic credit conditions will support the expanding economy. "Banks will continue to perform a catalytic role for a more dynamic and participatory economic development," he said. The BSP believes that bank lending would continue to post strong growth as more companies borrow more to bankroll their expansion programs. There has been an increasing demand for loans by corporate and individual borrowers due to an upbeat outlook of the domestic economy, lower interest rates, and improved terms of financing by banks, the central bank said. — JE/OMG, GMANews.TV