PH economy awash with cash, but lockdown crimped May loan growth, says BSP

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PH economy awash with cash, but lockdown crimped May loan growth, says BSP
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BSP said its preliminary data showed that outstanding loans of universal and commercial banks grew by 11.3 percent in May. | daxINQ

Loans for production activities grew by 9.8 percent in May from 11.1 percent in the previous month.

Bank lending to other sectors also increased during the month, except for mining and quarrying , professional, scientific, and technical services , and manufacturing . “Amid the challenge of keeping credit flowing to affected businesses and households, the BSP has adopted a range of measures to support bank lending, including a further reduction of the policy rate to complement the various liquidity-enhancing and regulatory measures,” the central bank said.

Meanwhile, preliminary data showed that domestic liquidity grew by 16.6 percent year-on-year to about ₱13.7 trillion in May.This was faster than the 16.2 percent expansion in April. On a month-on-month seasonally-adjusted basis, the amount of liquidity circulating in the financial system increased by 0.6 percent.

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