Philippine Oct bank lending rises to 2-1/2 yr high

* Oct loan growth net of RRPs 22.2 pct y/y, highest since
Feb 2009
* S/adj lending net of RRPs up 0.1 pct in Oct vs Sept

MANILA, Dec 13 (Reuters) - The Philippine central bank
on Tuesday released data on lending by commercial banks in
October:

KEY DATA Oct Sept Aug July June May

(pct change y/y)
Total loans net of reverse
repurchase (RRP) deals 22.2 21.7 19.8 19.1 18.8 17.4

Total loans with RRP 21.1 18.9 24.8 23.6 20.6 19.4

Seasonally adjusted data (pct change mth on mth)
Total loans net of RRP 0.1 1.0 1.4 1.4 2.4 5.3
Total loans with RRP 1.2 -2.0 2.2 3.0 0.5 3.5

KEY POINTS
* The central bank said the robust credit growth should help
shield the domestic economy against ongoing external headwinds.
* Production loans, comprising more than four-fifths of
commercial banks' loan portfolios, rose 23.1 percent in October
from a year earlier, faster than the previous month's 22.9
percent growth.
* Consumer loans grew 20.2 percent in October from a year
earlier, higher than the previous month's 17.9 percent growth.
* The central bank has said banks should help spur activity
via more lending given ample liquidity in the system.

* The government cut growth forecasts to 4.5 to 5.5 percent
from 5 to 6 percent this year and 5 to 6 percent from 5.5 to 6.5
percent in 2012 and committed to accelerate some spending in the
remaining months of the year.
* The Bangko Sentral ng Pilipinas has said it was willing to
ease monetary policy early next year if the outlook for growth
worsened.
* Some analysts were betting on cuts of as much as 50 basis
points in interest rates in the first half of 2012 as moderating
inflation pressures give authorities the leeway to focus on
boosting growth, which has lost significant momentum this year.

LINKS:
- For details on bank lending, click on Philippine central
bank website www.bsp.gov.ph

(Reporting by Erik dela Cruz; Editing by Rosemarie Francisco)