Bank lending by universal and commercial banks climbed 11.4 percent in April 2026, picking up from the 10.7 percent growth seen in March. After accounting for seasonal shifts, loans also rose 1.1 percent from the previous month, signaling banks expect sustained demand for credit through the second quarter. Loans to local residents, which make up most of the total, grew 11.8 percent—faster than March’s 11.1 percent—while lending to non-residents remained a small share of the overall portfolio.
Business loans expanded 10.7 percent, an improvement from 9.7 percent a month earlier, with strong gains in key sectors. Lending jumped 25.8 percent for electricity, gas, and air-conditioning supply, 11.8 percent for wholesale and retail trade, 8.1 percent for real estate, 6.7 percent for financial and insurance activities, and 1.0 percent for manufacturing. Consumer credit to households grew 19.6 percent, slightly slower than March’s 20.5 percent, as growth in credit card and vehicle loans eased a little. The central bank tracks lending closely, as it is a main channel through which monetary policy affects the broader economy.
Domestic liquidity, or the broad money supply measure M3, reached ₱20.3 trillion in April, growing 12.2 percent from a year earlier—nearly matching March’s revised 12.1 percent expansion. The growth came mainly from increased borrowing by private businesses and households, with liquidity also up 0.7 percent month-on-month when adjusted for seasonal patterns. Private sector claims, covering loans to companies and families, rose 12.6 percent, accelerating from March’s 11.9 percent. Lending to the national government went up 15.1 percent, driven by more outstanding government securities and lower government deposits with banks and the central bank.
Net foreign assets, reflecting the difference between foreign assets and liabilities, grew 8.9 percent in peso terms, supported by both the central bank’s and commercial banks’ larger holdings of foreign currency assets. The narrower money supply measure M1—cash in circulation and current account deposits—rose 8.6 percent, a slower pace than March’s 9.5 percent. The central bank stated it will keep liquidity aligned with its goals of stable prices and a sound financial system.
The parallel rise in lending and liquidity shows ample funds are available in the financial system, supporting business operations, investment, and household spending. Steady credit flow helps drive economic activity, while balanced liquidity levels are key to keeping inflation manageable and the financial system stable.
