Outstanding loans at Philippine banks rose 8.1 percent in May from a year earlier, speeding up from a 6.7% expansion in April because of double-digit growth in loans to the mining, construction, utility, transportation and retail trade sectors.

The Bangko Sentral ng Pilipinas said in a statement that outstanding loans, net of placements in its reverse repurchase (RRP) facility, rose to P2.142 trillion in May from P1.981 trillion a year earlier.

Including RRP placements, banks' outstanding loans increased 7.7% to P2.297 trillion in May from P2.132 trillion in May 2009, the central bank said. In April, outstanding loans including RRP placements rose 6.2% on year.

Meanwhile, broad money supply expanded 10.7% from a year-earlier in May, a slower pace compared to the 12.4% growth in April due to a marginal contraction in net domestic assets, the central bank said Wednesday.

The BSP said that the M3 money supply, which is also a measure of domestic liquidity, rose a seasonally-adjusted 0.6% in May compared with a month earlier, slower than the 1.8% growth in April. (Dow Jones)