BANK lending continued to rise in September but money supply growth was marginally slower, Bangko Sentral ng Pilipinas (BSP) data issued on late Friday showed.

The outstanding loans of universal and commercial banks, net of reverse repurchase (RRP) placements with the central bank, grew by 11.0 percent, slightly higher than the 10.7 percent recorded in August.

Domestic liquidity (M3) growth, meanwhile, moderated to 5.4 percent to about P17.6 trillion from August's 5.5 percent.

Month-on-month and seasonally adjusted, bank lending expanded by just 0.8 percent while liquidity growth was 0.7 percent higher.

Outstanding loans to residents net of RRPs grew by 11.3 percent in September from 10.9 percent a month earlier, while those granted to nonresidents edged up by 0.3 percent, slowing from 1.5 percent.

Loans for production activities grew by 9.8 percent from 9.4 percent in August.

This mostly comprised lending for real estate activities (14.2 percent), wholesale and retail trade, repair of motor vehicles and motorcycles (12.0 percent), manufacturing (10.6 percent), and electricity, gas, steam and airconditioning supply (7.5 percent).

Consumer loans to residents, meanwhile, saw growth ease to 23.4 percent from 23.7 percent and was said to have been driven by credit card lending.

As for liquidity, domestic claims grew by a slower 9.6 percent in September from 10.0 percent in the prior month.

Private sector claims rose to 12.4 percent from August's 11.9 percent, attributed to sustained expansion in bank lending to non-financial private corporations and households.

Net claims on the central government saw growth slow to 6.6 percent from 8.5 percent as a rise in government deposits with the BSP offset an increase in borrowings.

In peso terms, net foreign assets (NFA) expanded by 8.6 percent from 2.4 percent in August.

The central bank's NFA position grew by 14.2 percent while that of banks was said to have contracted "on account of higher bills payable."

The BSP said it would continue to ensure that "domestic liquidity conditions are consistent with the prevailing stance of monetary policy, in line with its price and financial stability objectives."

Rizal Commercial Banking Corp. chief economist Michael Ricafort said that money supply growth could increase following last month's cut in bank reserve requirements, which added about P400 billion in liquidity to the financial system.