Bank lending growth slowed in October this year, while domestic liquidity maintained its growth rate.

According to latest data from the Bangko Sentral ng Pilipinas (BSP), bank lending of universal and commercial banks (U/KBs), excluding those placed in the central bank’s reverse repurchase facility, grew by 10.7 percent in October, slightly slower than the 11 percent expansion in September this year.

Outstanding loans issued by U/KBs amounted to P12.5 trillion from P12.40 trillion in September and P11.30 trillion in October last year.

Outstanding loans to residents, net of RRPs, grew by 10.7 percent in October from 11.3 percent the previous month.

The BSP said outstanding loans to non-residents, on the other hand, rose by 6.8 percent in October after contracting by 0.3 percent in September.

Loans for production activities expanded by 9.1 percent in October from 9.8 percent in September, due largely to sustained lending to key industries such as real estate activities; wholesale and retail trade, repair of motor vehicles and motorcycles; and manufacturing.

“Meanwhile, consumer loans to residents grew by 23.6 percent in October from 23.4 percent in September, driven mainly by increased credit card and motor vehicle loans,” said the BSP.

Preliminary data from the BSP, meanwhile, showed that domestic liquidity expanded by 5.5 percent to P17.7 trillion, the same pace as in the previous month.

“The BSP will continue to ensure that domestic liquidity conditions are consistent with the prevailing stance of monetary policy, in line with its price and financial stability objectives,” said the BSP.

Domestic claims rose by 9.8 percent in October from 9.6 percent in the previous month.

Claims on the private sector grew by 11.5 percent from 12.5 percent in September with the continued expansion in bank lending to non-financial private corporations and households.

Net claims on the central government went up by 8 percent, compared to 6.6 percent in the previous month, amid higher borrowings by the national government.

Net foreign assets (NFA) in peso terms increased by 11.2 percent from 8.6 percent in September.

The BSP’s NFA grew by 13.8 percent, reflecting the increase in gross international reserves, while the NFA of banks contracted, largely on account of higher bills and bonds payable.