Bank lending recorded the highest growth in almost two years, while domestic liquidity also grew faster in November last year, the Bangko Sentral ng Pilipinas (BSP) said.

Preliminary data released by the BSP on Friday showed that bank lending of universal and commercial banks (U/KBs) grew by 11.1 percent in November, the highest recorded since the 13.7 percent logged in December 2022.

Outstanding loans issued by U/KBs amounted to PHP12.67 trillion from P12.50 trillion in October last year and P11.40 trillion in November 2023.

Loans for production activities rose by 9.8 percent in November from 9.1 percent in October.

The BSP attributed this to the sustained increase in lending to wholesale and retail trade, repair of motor vehicles, and motorcycles; electricity, gas, steam, and air-conditioning supply; and financial and insurance activities.

Consumer loans to residents, meanwhile, rose by 23.3 percent, driven by the increase in credit card and motor vehicle loans.

In a separate report, the BSP, meanwhile, said domestic liquidity grew at a faster pace of 7.7 percent to P18.1 trillion.

In October last year, domestic liquidity grew by 5.4 percent.

Domestic claims increased by 10.8 percent in November last year from 10 percent in the previous month.

The BSP said claims in the private sector expanded by 11.7 percent from 11.8 percent due to the continued expansion in bank lending to non-financial private corporations and households.

Net claims on the central government grew by 9.2 percent from 8.4 percent in October partly due to continued borrowings by the national government.

Net foreign assets (NFA) in peso terms went up by 9.8 percent in November from 11.3 percent in October.

The BSP’s NFA grew by 12.8 percent, reflecting the increase in gross international reserves, while the NFA of banks contracted, mainly due to higher bills payable and bonds payable.

"Looking ahead, the BSP will ensure that domestic liquidity and lending conditions are in line with its price and financial stability mandates," the central bank said.

PNA PHOTO