Bank lending picks up for 2nd straight month

The growth in loans disbursed by big banks accelerated for a second straight month to 10.9 percent in August, from 10.4 percent in July, data from the Bangko Sentral ng Pilipinas (BSP) showed.

- BY KEISHA TA-ASAN

Based on preliminary data, loans released by universal and big banks amounted to P12.25 trillion in end-August, P1.18 trillion higher than the P11.07 trillion recorded in the same period last year.

Credit growth marked the fastest in 20 months or since the 13.7-percent expansion in December 2022, despite the high interest rate environment.

"Looking ahead, the BSP will continue to ensure that domestic liquidity and lending conditions are aligned with its price and financial stability objectives," the BSP said.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said the pickup in lending growth was after the BSP's first rate cut in nearly four years at its August meeting.