MANILA – Outstanding loans from universal and commercial banks (U/KBs) grew at a slower pace in August, according to preliminary data from the Bangko Sentral ng Pilipinas (BSP).

Year-on-year, U/KB loans expanded by 11.2 percent in August, easing from 11.8 percent in July. After seasonal adjustment, outstanding loans rose by 0.4 percent month-on-month.

Loans to residents increased by 11.6 percent from 12.4 percent in July, while loans to non-residents recorded a slower contraction of 5.9 percent from an 8.1-percent decline in the previous month.

Business loans rose by 9.9 percent in August from 10.8 percent in July, with lending growth noted in real estate activities (11.0 percent); electricity, gas, steam, and air-conditioning supply (28.1 percent); wholesale and retail trade, repair of motor vehicles and motorcycles (8.1 percent); financial and insurance activities (6.9 percent); and information and communication (7.5 percent).

Consumer loans to residents grew by 23.9 percent, slightly faster than July’s 23.6 percent, driven by credit card, motor vehicle, and salary loans.

The BSP said it continues to monitor bank lending as a key transmission channel of monetary policy. It added that it will ensure domestic liquidity and lending conditions remain aligned with its price and financial stability mandates.