Foreign currency deposit unit (FCDU) loans increased by 2.9 percent in the fourth quarter of 2025, reaching US$15.56 billion from US$15.13 billion in the previous quarter. The US$435.61 million rise reflects a modest pickup in foreign currency borrowing by businesses and other clients.
Most of these loans—66.8 percent—went to Philippine-based borrowers, particularly exporters, transport and service firms, and power generation companies. The rest were extended to non-residents. Loans continued to be largely long-term, with about 79.2 percent having maturities of over one year, slightly lower than the previous quarter.
During the period, banks released US$8.32 billion in new loans, while US$7.87 billion was repaid, resulting in the net increase.
Despite the quarterly growth, FCDU loans were still 1.6 percent lower compared to the same period in 2024. This decline came even as foreign currency deposits grew by 7.9 percent year-on-year to US$59.83 billion, indicating that more funds were available but not fully translated into increased lending.
FCDU loans are an important secondary source of foreign exchange for the country. Aside from official reserves held by the central bank, these loans help supply dollars and other foreign currencies to businesses—especially importers and exporters—supporting trade and other economic activities that require foreign currency.
