The outstanding loans of universal and commercial banks, net of reverse repurchase placements with the Bangko Sentral ng PIlipinas, slowed to 10 percent in February from 10.4 percent the previous month, central bank data showed.
This, as the BSP continue hiking the country’s benchmark interest rate, which was brought to 6.25 percent in March.
On a month-on-month seasonally-adjusted basis, outstanding universal and commercial bank loans, net of RRPs, eased slightly by 0.2 percent, the BSP said.
“Sustained credit and ample liquidity will continue to support robust domestic demand. Even as the Philippine banking system remains sound, the BSP will keep a watchful eye over evolving market conditions to ensure that credit and liquidity dynamics continue to be in line with its price and financial stability mandates,” the BSP said.
Bank lending also declined to 10.4 percent in January from 13.7 percent in December 2022.
