Philippine banks hold credit standards steady as loan demand firms

More banks expect to see an increase in enterprise loans in Q4.

The majority of Philippine banks expect credit standards and loan demand to remain steady in Q4 2026, according to a poll by the Bangko Sentral ng Pilipinas (BSP).

Of the banks polled, 80.8% expect unchanged credit standards for enterprise loans, whilst 85.7% expect steady standards for household loans, the central bank found.

The bias towards tightening has moderated for both enterprise and household loans, the BSP said. A small share of banks expects to ease their credit standards.

Respondents said that uncertainty over the economic outlook, deterioration of borrower profiles, and lower risk tolerance are factors that could lead to tighter standards.

In terms of demand, 69.2% expect demand for enterprise loans to remain unchanged, 26.9% expect an increase, and 3.8% expect a decline.

Fewer banks expect unchanged demand and more expect an increase compared to the Q3 period, the BSP said.

Banks are expecting stronger loan demand from households, citing higher consumption, more attractive bank financing terms, and increased housing investment.