MANILA -- Outstanding loans of commercial banks, net of reverse repurchase (RRP) placements with the BSP, rose by 13.7 percent in March, slower than the 15.2 percent growth recorded in February. Similarly, bank lending inclusive of RRPs grew by 13.2 percent in March from 14.6 percent in the previous month.

On a month-on-month seasonally-adjusted basis, commercial bank lending increased by 0.1 percent for loans net of RRPs and by 0.2 percent for loans inclusive of RRPs.

Loans for production activities—which comprised more than 80 percent of banks' aggregate loan portfolio -- grew by 13.3 percent in March from 14.5 percent in February.

The growth in production loans was driven primarily by lending to the following sectors: real estate, renting, and business services (10.1 percent); manufacturing (11.4 percent); wholesale and retail trade (12.6 percent); electricity, gas and water (14.2 percent); and financial intermediation (19.3 percent).

Bank lending to other sectors also increased during the month except for public administration and defense, which declined by 2.3 percent.

Loans for household consumption expanded by 18.8 percent in March from 21.1 percent in February amid continued growth in credit card loans, auto loans and other types of loans (i.e., salary loans and personal loans).

Going forward, the BSP will continue to ensure that credit and liquidity conditions remain supportive of overall economic growth in a manner consistent with the BSP's price and financial stability objectives.*PNA

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