M3 growth accelerates; lending slows
Credit to Author: MAYVELIN U. CARABALLO, TMT| Date: Thu, 31 Jan 2019 16:23:23 +0000
Money supply grew faster in December despite an easing in bank lending, the Bangko Sentral ng Pilipinas (BSP) reported on Thursday.
Domestic liquidity or M3 expanded by 9.2 percent year-on-year to P11.612 trillion, faster than November’s revised 8.5 percent.
Month-on-month and seasonally adjusted, M3 growth decreased by 0.2 percent.
“The BSP will continue to closely monitor domestic liquidity dynamics to ensure that overall monetary conditions remain in line with maintaining price and financial stability,” the central bank said in a statement.
The expansion in domestic claims was steady at 14.6 percent, “due mainly to the sustained growth in credit to the private sector.“
Net claims on the central government grew at a faster 16.4 percent from the previous month’s revised 12.2 percent.
Net foreign assets (NFA) in peso terms expanded by 1.3 percent from the previous month’s 3.2-percent decline.
Bank lending growth, meanwhile, decelerated to 15.6 percent in December from November’s 16.8 percent.
Including reverse repurchase placements (RRPs) with the BSP, lending growth also moderated to 14.7 percent from the previous month’s 15.4 percent.
On a month-on-month and seasonally-adjusted basis, commercial bank loans net of RRPs and inclusive of RRPs increased by 0.3 percent and 0.5 percent, respectively.
Lending for production activities, which accounted for 88.8 percent of the aggregate loan portfolio, grew at a slower 15.8 percent from 17.2 percent in November.
Household consumption loan growth marginally eased to 13.5 percent from the previous month’s 13.8 percent.
“The deceleration in motor vehicle loans as well as the contraction in salary-based general purpose consumption loans and other types of household loans was tempered by the faster expansion in credit card loans during the month,” the BSP said.
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