Credit growth in July fastest in 19 months

Lending growth picked up to 10.4 percent in July from the 10.1 percent rise in June, its highest level in 19 months, according to data from the Bangko Sentral ng Pilipinas (BSP).

- KEISHA TA-ASAN

Based on preliminary data, loans disbursed by universal and commercial banks amounted to P12.14 trillion in endJuly, P1.14 trillion higher than the P11 trillion recorded in the same period last year.

Bank lending growth marked the fastest in 19 months or since the 13.7 percent expansion in December 2022 despite the elevated high interest rate environment.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said the loan growth in July is a good sign for the economy as it is faster than the gross domestic product (GDP) growth of 6.3 percent in the second quarter.