Preliminary data show that outstanding loans of universal and commercial banks, net of reverse repurchase (RRP) placements with the BSP, grew at a faster rate of 11.1 percent in July from 10.5 percent in June. On a month-on-month seasonally-adjusted basis, commercial bank loans net of RRPs grew by 2.1 percent.

Loans for production activities�which comprised 87.6 percent of banks' aggregate loan portfolio, net of RRPs�grew by 9.8 percent in July, similar to the pace recorded in the previous month. The growth in production loans was driven primarily by lending to the following sectors: real estate activities (18.1 percent); financial and insurance activities (19.1 percent); electricity, gas, steam and air conditioning supply (13.8 percent), construction (38.2 percent); and wholesale and retail trade, repair of motor vehicles and motorcycle (4.5 percent).

Bank lending to other sectors also increased during the month, except those in other community, social and personal activities (-41.3 percent) and professional, scientific and technical activities (-36.0 percent).

Meanwhile, loans for household consumption grew by 23.0 percent in July from 15.3 percent in June, due to faster growth in motor vehicle and salary-based general purpose consumption loans during the month.

Going forward, the BSP will continue to ensure that the expansion in domestic credit and liquidity remains consistent with the BSP's price and financial stability objectives.

Source: Bangko Sentral ng Pilipinas (BSP)