Bank Lending Grows by 12.2% in February

Bank lending in the country increased by 12.2% in February 2025 compared to the same month last year, according to the Bangko Sentral ng Pilipinas (BSP), as universal and commercial banks continued to provide loans to businesses and consumers despite a slight slowdown from January.

Loans given to residents rose by 12.6% in February, down from 13.3% in January. Meanwhile, loans to non-residents continued to decline, dropping by 3.2% after a 3.5% decrease in the previous month.

Lending to businesses for production activities grew by 11.2%, slightly lower than the 11.8% growth in January. The industries that saw the most borrowing included electricity, gas, steam, and air-conditioning supply (21.5% growth), wholesale and retail trade (13.7%), manufacturing (0.9%), construction (12.7%), and transportation and storage (20.6%).

Consumer loans to residents increased by 24.1%, driven by more borrowing through credit cards and motor vehicle loans.

The BSP assured the public that it will continue to monitor liquidity and lending conditions to keep the country’s financial system stable. (ASC)