Money supply increases 9%
Domestic liquidity or money supply grew 9 percent in August to P7.789 trillion from P7.148 trillion a year ago, on sustained demand for credit in the domestic economy, the Bangko Sentral ng Pilipinas said Thursday.
The August expansion was faster than the 8.4 percent growth recorded in July.
“The continued expansion of money supply during the month indicates that domestic liquidity remains adequate to support the requirements of the economy,” Bangko Sentral said.
Meanwhile, outstanding bank loans rose 14.1 percent in August to P4.667 trillion from P4.089 trillion a year ago. This was faster than the 13.6-percent growth recorded in the previous month.
Loans for production activities, which comprised more than 80 percent of banks’ aggregate loan portfolio, rose 13.8 percent in August, up from 13.4 percent in July.
“The expansion in production loans was driven primarily by increased lending to the following sectors: real estate activities [14.9 percent]; electricity, gas, steam and airconditioning supply [25.6 percent]; wholesale and retail trade, and repair of motor vehicles and motorcycles [15.5 percent]; financial and insurance activities [15.3 percent]; and manufacturing [5.8 percent],” Bangko Sentral said.