Data from the Bangko Sentral ng Pilipinas (BSP) showed that outstanding loans of universal and commercial banks grew by 10.1% year-on-year, up from 9.6% in April.
Excluding short term placements with the central bank, the Philippine banking system now has a total of P11.67 trillion pesos lent out to borrowers of all types across the country.
Lending for production activities saw a robust growth of 8.4%, fueled by a 13.2% rise in real estate loans and a notable 26.7% increase in transportation and storage loans, the central bank data revealed.
The surge reflected a growing demand for infrastructure and housing development across the country.
Spike in credit card use
More interestingly, however, consumer loans also experienced a substantial growth, expanding by 25.6% in May from 25.3 percent in April, driven by higher credit card, motor vehicle, and salary-based loans.
Credit card loans alone surged 29.4% in May to total P776 billion as of the end of that period.
All told, there are now P1.37 trillion worth of outstanding consumer loans across the Philippine banking system.
“Looking ahead, the BSP will ensure that domestic liquidity and credit conditions remain in line with its price and financial stability objectives,” BSP Governor Eli Remolona Jr. said a statement.
