The various banks are set to keep their lending standards mostly unchanged through the third quarter of 2026, pointing to a resilient banking system that remains well-positioned to drive economic growth despite ongoing geopolitical uncertainties.
According to the latest Bangko Sentral ng Pilipinas survey on local credit conditions, 75.5 percent of responding banks expect to hold their enterprise lending criteria steady, while 80 percent plan to keep household loan standards unchanged. Both figures mark an increase from the previous quarter, signaling greater stability across the board. While a portion of lenders still lean toward tightening their standards due to a more cautious economic outlook and lower risk tolerance, the overall tightening trend has moderated, and a few banks even anticipate easing credit terms for businesses.
At the same time, appetite for credit is showing clear signs of expansion. Survey results reveal that over 30 percent of banks foresee a surge in enterprise loan demand, driven primarily by businesses needing to finance inventory, manage accounts receivable, and capitalize on a brightening economic backdrop. Household borrowing is also expected to rise, boosted by robust consumer spending, increased investments in housing, and attractive financing terms from local institutions.
Overall, the findings highlight a banking sector balancing prudence with opportunity, maintaining solid credit guardrails while remaining ready to meet the financial needs of businesses and consumers alike.
