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Bank loan growth slowed for the fourth month in a row as fewer businesses and individuals were able to maintain their appetite for borrowing due to uncertainties triggered by the coronavirus pandemic. Data from the Bangko Sentral ng Pilipinas (BSP) showed that outstanding loans Extended by universal and commercial banks, net of their short-term deposits with the regulator, grew 6.7 percent in July, slower than the 9.6 percent growth in June.
On a seasonally adjusted month-over-month basis, commercial bank loans net of short-term loans declined 0.9 percent.
“The slowdown in bank lending is due to weaker corporate sector performance and declining demand for loans, as the current health crisis continued to limit domestic economic activity,” said the BSP. The latest data marked the fourth consecutive decline in the pace of lending since the 13.6 percent growth in March.
Loans for productive activities, net of short-term loans, grew 5.9 percent in July, slower than the 8.2 percent in June. Growth in July was driven mainly by loans to real estate activities, information and communications, financial and insurance activities, supply of electricity, gas, steam and air conditioning, human health and social work activities, and transportation and storage. Loans to households grew at a slower pace of 17.3 percent in July from 27 percent in June. INQ
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