Bank lending in the Philippines saw a significant increase in April, marking its highest growth in a year despite the current high-interest rate environment. According to data released by the Bangko Sentral ng Pilipinas (BSP), outstanding loans of major banks, excluding interbank lending, grew by 9.6 percent year-on-year to reach P11.91 trillion.
This growth rate was higher than the 9.4 percent recorded in March, with a month-on-month credit increase of 0.9 percent. The data indicates a strong demand for loans, fueled by improving economic conditions.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., attributed the recent uptick in bank lending to the positive business and economic climate. However, Ricafort noted that the growth was somewhat restrained by the relatively high interest rates.
The majority of loans, accounting for 85.7 percent of the total, were directed towards business activities, which saw a 7.8 percent increase to P10.2 trillion. Key industries such as real estate, electricity, and wholesale/retail trade witnessed significant lending growth.
Consumer loans also saw a substantial rise, growing by 25.3 percent to P1.3 trillion, primarily driven by credit card, motor vehicle, and general-purpose consumption loans.
Overall, the strong performance of bank lending in April indicates resilience in the face of high interest rates, showcasing the continued confidence in the Philippine economy.
