Loans from universal and commercial banks (U/KBs) grew year-on-year by 10.4 percent in July from 9.8 percent in June, reflecting sustained lending to businesses and consumers.

Outstanding loans to residents,which accounted for the bulk of total bank lending, rose by 10.8 percent year-on-year in July.

Loans for business activities expanded faster by 9.8 percent in July, led by increased lending to the following key sectors: electricity, gas, steam, and air-conditioning supply; wholesale and retail trade, and repair of motor vehicles and motorcycles; manufacturing; financial and insurance activities; and information and communication.

Consumer loans to residents grew by 17.1 percent in July, slower than in the previous month. Growth in credit card and motor vehicle loans softened as consumer confidence remained weak.

The BSP monitors bank lending as it serves as a key monetary policy transmission channel. Bangko Sentral ng Pilipinas