MANILA - The Bangko Sentral ng Pilipinas said bank lending posted slower growth in June compared to May.
The outstanding loans of universal and commercial banks grew at a slightly slower rate of 10.5 percent in June from 11.9 percent in May, the BSP said based on preliminary data.
The BSP noted that the faster growth of loans for household consumption was offset by the slower growth in loans for production activities, which made up the bulk of banks' loan portfolios.
Despite this, the demand for loans continued to be the main driver for the expansion of money supply.
Domestic liquidity expanded 6.4 percent in June to about P11.8 trillion.
"Going forward, the BSP will continue to ensure that the expansion in domestic credit and liquidity remains consistent with the BSP's price and financial stability objectives," the BSP said.
Domestic liquidity and the growth in loans are some of the factors considered by the central bank in setting monetary policy.