Credit growth picks up after BSP rate cut

Credit growth improved for the third straight month to 11 percent in September as the Bangko Sentral ng Pilipinas (BSP) lowered borrowing costs and hinted at additional rate cuts, fueling optimism for continued economic expansion.

- KEISHA TA-ASAN

The outstanding loans of universal and commercial banks amounted to P12.4 trillion in end-September, P1.23 trillion higher than the P11.17 trillion in the same period last year.

The increase in September was faster than the 10.7 percent expansion in August. It marked the fastest in 21 months or since the 13.7-percent expansion in December 2022.

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

BSP data showed outstanding loans for production activities grew faster at 9.8 percent to P10.6 trillion, accounting for 85.5 percent of the total lending in end-September.