Foreign currency deposit unit (FCDU) loans fell 5 percent to US$15.13 billion in the third quarter of 2025, down US$802 million from the previous quarter, data showed. Year on year, loans declined by 3.9 percent, even as foreign currency deposits continued to grow.
Despite the drop, FCDU loans remain economically important as the country’s secondary source of foreign currency, helping fund trade, energy, and other activities that need dollars and other foreign currencies. About 63.4 percent of outstanding loans went to Philippine-based borrowers, led by exporters, transport and logistics firms, and power generation companies.
Most loans were medium- to long-term, with nearly 80 percent maturing beyond one year, signaling continued use for longer-term business needs. During the quarter, banks booked US$9.77 billion in new loans while borrowers repaid US$10.56 billion.
Meanwhile, foreign currency deposits rose 5.7 percent to US$60.73 billion, highlighting ample dollar liquidity even as loan demand eased.
FCDU loans are foreign currency loans provided by BSP-authorized banks and play a vital role in supporting businesses and individuals with foreign exchange requirements.
