The Bangko Sentral ng Pilipinas (BSP) announced a significant rise in the nation’s money supply, known as M3, for December 2024. The money supply grew by 7.7% to reach PHP18.8 trillion, up from PHP17.4 trillion the previous year. On a month-to-month basis, M3 saw a slight increase of 0.2% from PHP18.1 trillion in November 2024.
Domestic claims also saw an uptick, rising by 10.4% to PHP20.52 trillion in December 2024 from PHP18.6 trillion in December 2023. This growth was primarily fueled by a 12.2% increase in claims on the private sector, which climbed to PHP13.2 trillion from PHP11.7 trillion, driven by heightened bank lending activities. Additionally, net claims on the central government increased by 7.2% to PHP5.5 trillion from PHP5.2 trillion, reflecting ongoing government borrowing.
The BSP also reported a 6% rise in net foreign assets in peso terms, attributed to an increase in gross international reserves. Bank lending in December 2024 surged by 12.2% to PHP13.1 trillion from PHP11.7 trillion the previous year. Outstanding loans to residents, excluding reverse repurchase placements, grew by 12.4% to PHP12.8 trillion from PHP11.4 trillion.
Loans for production activities expanded by 10.8%, with notable increases in lending to sectors such as wholesale and retail trade, repair of motor vehicles and motorcycles (up 10.1%), electricity, gas, steam, and air-conditioning supply (up 14.2%), manufacturing (up 7.4%), financial and insurance activities (up 7.4%), and construction (up 12.6%). Consumer loans to residents also rose by 25% in December from 23.3% in November, driven by increases in credit card loans, salary-based general purpose consumption loans, and motor vehicle loans.
The BSP emphasized its commitment to maintaining domestic liquidity and bank lending conditions in line with its objectives for price and financial stability.