Bank lending growth at 9-month low in August

Lending by big banks or universal and commercial banks (UK/Bs) expanded more slowly in August, with loans-excluding placements in the Bangko Sentral ng Pilipinas' (BSP) reverse repurchase (RRP) window-rising 11.2 percent year-on-year, down from 11.8 percent in July.

- (Derco Rosal)

This was the slowest annual expansion in nine months, or since the 11.1-percent growth in November last year.

Broken down, the growth in outstanding loans to residents slowed to 11.6 percent in August from 12.4 percent in July, according to the latest data from the BSP released on Thursday, Oct. 2.

Meanwhile, the contraction in outstanding loans to nonresidents moved at a slower rate of 5.9 percent during the month from the decline of 8.1 percent in July. Outstanding loans to nonresidents cover those extended by big banks' foreign currency deposit units (FCDUs) to borrowers abroad.

Loans supporting business activities expanded by a slower 9.9 percent in August compared with 10.8 percent in July.