Bank lending in the Philippines continued to expand in December, but at a slower pace, as households and businesses grew more cautious amid rising costs and tighter credit conditions.
Preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed loans from universal and commercial banks grew 9.2% year-on-year in December, easing from 10.3% in November. On a seasonally adjusted basis, outstanding loans declined by 2.0% month-on-month.
Loans to residents rose by 9.7%, slower than the previous month’s 10.7% growth, while lending to non-residents contracted by 8.1%, a wider drop compared with November’s 4.5% decline.
Business loans increased by 8.0%, driven mainly by real estate activities, utilities such as electricity and gas, wholesale and retail trade, and financial and insurance services. Consumer loans also remained robust, rising 21.4%, although slightly below November’s 22.9%, suggesting households are still borrowing but with more restraint.
The BSP said it continues to closely monitor bank lending as a key transmission channel of monetary policy.
“Ensure that domestic liquidity and bank lending conditions remain consistent with its price and financial stability mandates.”
Analysts noted that the slower pace of loan growth may temper spending and investment in early 2026, as policymakers balance credit availability with financial stability amid inflation pressures, interest rate movements, and global economic uncertainty.