Philippine bank lending, liquidity growth slower in June

MANILA, Aug. 1 (Xinhua) -- The growth rate of Philippine bank lending and money circulating in the economy both slowed down in June, according to local media reports on Saturday.

Outstanding loans of universal and commercial banks expanded by 9.8 percent in June, preliminary data from the central bank of the Philippines showed, down from May's 12.1 percent and marking a four-month low since February's 9.6 percent.

Domestic liquidity, meanwhile, expanded by 10.6 percent to 20.5 trillion Philippine pesos in June, easing from the 12.8-percent growth recorded in May, according to the central bank.

"Companies appear to be adopting a wait-and-see approach amid global uncertainties, focusing more on managing cash flow and improving operational efficiency rather than aggressively expanding," Jonathan Ravelas, senior adviser at Reyes Tacandong & Co., was quoted by The Manila Times as saying.

The Philippines, a Southeast Asian nation of over 100 million people, relies heavily on imported oil and gas. Soaring energy prices and a weakening currency have rattled markets this year, dealing a heavy blow to the economy. ■