Bank lending maintains double-digit pace — BSP

Bank lending continued to register an upward momentum, posting a 14.2-percent growth to P2.423 trillion in April, the Bangko Sentral ng Pilipinas (BSP) reported on Thursday. "The steady growth in bank lending reflects the prevailing pace of domestic economic activity," BSP Governor Amando Tetangco Jr. pointed out in a statement. This is the fourth straight month that bank lending posted a double-digit growth for the year after expanding by 11 percent in January, 12.3 percent in February and 14.1 percent in March. Despite the economic slowdown in the first quarter of the year, loans extended to productive activities grew 15.7 percent to P2.187 trillion in April from P1.899 trillion in the same period last year as corporate borrowers sourced more loans from banks to bankroll their expansion programs. In terms of growth, data showed that loans to the mining and quarrying sector posted the biggest jump of 74.2 percent, followed by the electricity, gas and water sector with 47.3 percent, and the manufacturing sector with 19.5 percent. In peso terms, the manufacturing sector got the biggest share with P406.18 billion; followed by the real estate, lending and business services sector with P385.9 billion; the agriculture, hunting, and fisheries sector with P344.38 billion; wholesale and retail trade sector with P269.1 billion; and electricity, gas, and water sector with P215.3 billion. Tetangco also reported that the growth in the loans extended for household consumption soared by 12.9 percent year-on-year to P199.41 billion as of end-April from P176.59 billion in the same period last year. Meanwhile, data showed that credit card loans went up by 7.6 percent to P120.5 billion from P111.95 billion and auto loans jumped 27.3 percent to P62.2 billion. The BSP chief said authorities would ensure appropriate monetary and financial conditions for continued credit expansion while promoting the BSP's primary mandate of maintaining price stability. — JMT/VS, GMA News