Bank lending hikes 9.5% in February

Credit activity in the country’s financial system continued to expand in February, with domestic lending growing at a slightly faster pace, according to the Bangko Sentral ng Pilipinas (BSP).

Latest data showed outstanding loans from domestic banks rose 9.5 percent in February, up from 9.3 percent in January, reflecting steady credit demand across key sectors of the economy.

Loans to residents climbed 10.1 percent, accelerating from the previous month’s 9.9 percent growth, while lending to non-residents declined by 13.2 percent, reversing the prior month’s 10.4 percent contraction.

Business lending expanded 8.6 percent, slightly higher than January’s 8.2 percent, supported by increased borrowing in utilities, transport, real estate, and trade.

Among the fastest-growing sectors were water supply, sewerage, and waste management at 26 percent; electricity and energy-related services at 23.5 percent; transportation and storage at 19.3 percent; real estate at 9 percent; and wholesale and retail trade, including vehicle repair, at 8.2 percent.

Consumer lending, however, eased to 20.8 percent from 21.3 percent, as credit card and motor vehicle loan growth slowed.

The BSP also reported that loans extended by foreign currency deposit units (FCDUs) rose to $15.56 billion in the fourth quarter of 2025, up from $15.13 billion in the previous quarter. Around 66.8 percent of these loans went to domestic borrowers, particularly exporters, logistics firms, and power generation companies.

Most FCDU loans—about 79.2 percent—were medium to long term, with maturities exceeding one year.

Meanwhile, domestic liquidity, or M3, expanded 10.3 percent year-on-year to ₱19.8 trillion as of end-February, accelerating from January’s 8.6 percent growth.

The BSP said claims on the domestic economy rose 11 percent, reflecting increased credit exposure to both private and government sectors as financial conditions remained supportive of economic activity.