Outstanding consumer loans by universal and commercial banks grew by 24.1 percent year-on-year in February, far outpacing the 12.2 percent rise in overall bank lending for the same period. The BSP said this was slightly slower than the 24.4 percent consumer loan growth recorded in January.
According to the Bangko Sentral ng Pilipinas, the survey, which used both modal and diffusion index methods to assess loan trends, reflects caution among banks amid concerns about borrower profiles and portfolio profitability.
According to the central bank, the Residential Real Estate Price Index increased by 2.7% year-on-year, marking a significant deceleration from the 6.1% annual increase recorded in the first quarter of 2024.
For the third consecutive month this year, cash and “near cash” items circulating in the Philippine financial system grew above 6% in July this year as the market anticipated the August interest rate reduction promised by the Bangko Sentral ng Pilipinas.
For the second consecutive month since January 2024, the amount of cash and “near cash” items circulating in the Philippine financial system grew above 6%, according to the Bangko Sentral ng Pilipinas.