<\/p>\n
BIG BANKS\u2019 loan growth slowed to a fourth-month low in June as businesses turned cautious and consumer demand weakened amid difficult macroeconomic conditions, the Bangko Sentral ng Pilipinas (BSP) said.<\/p>\n
Central bank data released on Friday showed that universal and industrial banks\u2019 outstanding loans, net of reverse repurchase agreements, rose by 9.8% to P14.882 trillion at end-June from P13.553 trillion a yr prior.<\/p>\n
This eased from the 12.1% climb in May and was the slowest annual loan growth in 4 months or for the reason that 9.6% in February.<\/p>\n
\u201cGrowth in loans from universal and industrial banks (U\/KBs) eased in June, reflecting cautious borrowing by firms and subdued consumer demand,\u201d the BSP said in a press release.<\/p>\n
Lending to residents went up by 10.3% yr on yr to P14.593 trillion from P13.231 trillion previously, easing from the 12.6% rise to P14.692 trillion in May. This accounted for the majority of the full loans.<\/p>\n
Banks lent P12.545 trillion for residents\u2019 production activities, 9.2% higher than P11.493 trillion last yr.<\/p>\n
Nevertheless, the rise was slower than the 11.7% jump seen in May, which the BSP attributed to subdued lending to major borrowing sectors reminiscent of construction, education, and other service activities.<\/p>\n
Loans for residents\u2019 business activities were largely driven by sustained demand from real estate; electricity, gas, steam, and air-conditioning supply; wholesale and retail trade, and repair of motorcars and motorcycles; manufacturing; transportation and storage; and agriculture, forestry, and fishing, it added.<\/p>\n
Meanwhile, big banks disbursed P2.048 trillion in consumer loans, 17.8% greater than the P1.738 trillion recorded as of June 2025, easing from the 19% increase the prior month.<\/p>\n
\u201cThis was because of slower growth in bank card and motorized vehicle loans, suggesting a more measured pace of household borrowing,\u201d the central bank said.<\/p>\n
Bank card loans jumped by 24.9% yr on yr to P1.294 trillion in June, easing from the 26.3% rise logged a month earlier.<\/p>\n
Loans for motorcars increased by 8.6% to P540.118 billion, also slower than 10.2% in May.<\/p>\n
Salary loans stood at P177.994 billion as of June, up 9.9% from last yr and faster than the 6.4% growth in May.<\/p>\n
However, nonresidents\u2019 outstanding loans hit P288.935 billion at end-June, 10.2% lower than P321.66 billion last yr. This was larger than the 8.3% decline the prior month.<\/p>\n
The BSP monitors banks\u2019 lending activities to trace the transmission of monetary policy.<\/p>\n
LIQUIDITY GROWTH EASES<\/strong> Domestic liquidity or M3 stood at P20.51 trillion as of June, 10.6% higher than P18.547 trillion last yr but down from the P20.604 trillion in May, based on preliminary data.<\/p>\n This year-on-year growth was the slowest since February, or when M3 rose by an annual 10.3%.<\/p>\n Month on month, domestic liquidity declined by 0.7% on a seasonally adjusted basis.<\/p>\n \u201cThe newest expansion in M3 eased from 12.8% within the previous month amid slower growth in credit activity,\u201d the BSP said.<\/p>\n M3 measures the amount of cash within the economy that features currencies in circulation, bank deposits, and other financial assets easily convertible to money.<\/p>\n \u201cBorrowings by each the private and public sectors remained the most important drivers of M3 growth,\u201d the central bank said. \u201cBank lending continued to channel funds to production sectors and households.\u201d<\/p>\n Domestic claims, which include those from private and government sectors, got here in 10.9% higher at P23.464 trillion in June from P21.157 trillion a yr earlier. Nevertheless, this eased from the 13.3% rise in May.<\/p>\n Claims on the private sector also increased by 11.7% yr on yr to P15.192 trillion.<\/p>\n \u201cThe National Government\u2019s issuance of debt securities and withdrawal of deposits from the BSP and banks to finance spending also supported domestic liquidity growth,\u201d the BSP said.<\/p>\n The central government\u2019s net claims, which accounts for its issuance of securities and withdrawal of deposits, amounted to P6.326 trillion in June, up 12.9% yr on yr from P5.602 trillion.<\/p>\n Claims on a sector confer with that sector\u2019s liabilities to depository corporations reminiscent of banks and the central bank.<\/p>\n Meanwhile, net foreign assets (NFA) in peso terms edged up by 4.1% to P7.028 trillion in June from P6.748 trillion last yr. This was slower than the 9.1% rise in May as banks\u2019 NFA position contracted by 12.1% to P631.76 billion from P718.879 billion a yr prior.<\/p>\n However, BSP data showed its NFA went up by 6.1% to P6.396 trillion from P6.029 trillion in June 2025.<\/p>\n NFAs reflect the difference between depository corporations\u2019 claims and liabilities to nonresidents.<\/p>\n The BSP said it should be sure that local bank lending and domestic liquidity conditions \u201cremain consistent with its price and financial stability objectives.\u201d \u2014 Katherine K. Chan<\/strong><\/p>\n<\/p><\/div>\n <\/p>\n","protected":false},"excerpt":{"rendered":" Gross domestic product (GDP) grew by 3% within the fourth quarter of 2025, which brought full-year growth to 4.4%. \u2014 PHILIPPINE STAR\/RYAN BALDEMOR BIG BANKS\u2019 loan growth slowed to a fourth-month low in June as businesses turned cautious and consumer demand weakened amid difficult macroeconomic conditions, the Bangko Sentral ng Pilipinas (BSP) said. Central bank […]<\/p>\n","protected":false},"author":1,"featured_media":375365,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[27982,3431,1082,5069,4874],"class_list":["post-375364","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-fourmonth","tag-growth","tag-june","tag-loan","tag-slows"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t
Meanwhile, the country\u2019s money supply growth also eased in June to log the slowest expansion in 4 months amid weaker lending activity, the central bank said.<\/p>\n