Philippine bank lending slows to 9.8% in June

Overall expansion was tempered by the construction and education sectors.

Lending growth amongst universal and commercial banks in the Philippines slowed in June 2026, driven by cautious corporate borrowing and softer household demand.

Data from the Bangko Sentral ng Pilipinas shows bank lending grew 9.8% year on year in June, down from 12.1% in May.

Loans for business activities rose 9.2%, easing from 11.7% in the previous month. Key sectors continuing to drive corporate credit included real estate, energy utilities, wholesale and retail trade, manufacturing, transport, and agriculture. 

However, overall expansion was tempered by weaker borrowing across construction, education, and other service sectors.

Consumer lending to residents also moderated, expanding 17.8% in June compared to 19.0% in May. The slowdown reflected a more measured pace of household borrowing, particularly in credit card balances and motor vehicle loans.

Total outstanding loans to resident corporate entities and individuals grew 10.3% year on year, continuing to account for the vast majority of total bank credit.

The central bank monitors credit growth closely as a primary channel for transmitting monetary policy. 

Central bank officials stated they will keep lending conditions aligned with their mandate to maintain price and financial stability.