MANILA – Loans extended by universal and commercial banks grew by 9.5 percent year-on-year in February, slightly faster than the 9.3 percent recorded in January, according to preliminary data from the Bangko Sentral ng Pilipinas (BSP).

Month-on-month, outstanding loans increased by 0.8 percent after adjusting for seasonal factors.

Lending to residents continued to rise, expanding by 10.1 percent in February from 9.9 percent in January. In contrast, loans to non-residents declined by 13.2 percent, a sharper drop compared to the 10.4-percent contraction recorded in the previous month.

Loans supporting business activities posted an 8.6 percent growth, up from 8.2 percent in January. Higher lending was observed in several key sectors, including electricity, gas, steam, and air-conditioning supply; real estate; wholesale and retail trade; transportation and storage; and water supply, sewerage, and waste management.

Meanwhile, consumer loans to residents grew at a slower pace of 20.8 percent from 21.3 percent, reflecting softer growth in credit card and motor vehicle loans.

The BSP said it continues to monitor bank lending as it serves as a key channel for monetary policy transmission.

The central bank added that it will ensure domestic liquidity and lending conditions remain aligned with its mandates of maintaining price stability and safeguarding the financial system.