Bank lending grows in August, snapping 8 straight months of slump

The economic devastation brought by the pandemic was so great that borrowers are still not borrowing while banks are hesitant to lend amid elevated unemployment rate.

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MANILA, Philippines — Bank lending finally snapped eight consecutive months of contraction to return to positive territory in August, bringing good news to a government that is counting on banks to jumpstart the economy from a pandemic-induced crash.

Excluding interbank lending, outstanding loans issued by big banks rose 1.3% year-on-year in August to P9.2 trillion, the Bangko Sentral ng Pilipinas reported Thursday.

The increase was a reversal from 0.7% decline in July. Month-on-month, credit grew by 0.9%.

Full Story: https://www.philstar.com/business/2021/09/30/2130832/bank-lending-grows-august-snapping-8-straight-months-slump