Bank lending grows by 11.4% in April

Loans from universal and commercial banks (U/KBs) increased by 11.4 percent year-on-year in April, from 10.7 percent in March. After adjusting for seasonal fluctuations, outstanding U/KB loans were higher by 1.1 percent month-on-month, reflecting banks’ expectations of steady loan demand from businesses and households in Q2 2026.

Outstanding loans to residents expanded by 11.8 percent year-on-year in April from 11.1 percent in March. Resident loans account for the bulk of total outstanding loans, while a small portion constitute loans to non- residents.

Loans for business activities grew by 10.7 percent in April, up from 9.7 percent in March. Lending rose for the following key industries: real estate activities (8.1 percent); electricity, gas, steam, and air-conditioning supply (25.8 percent); wholesale and retail trade, and repair of motor vehicles and motorcycles (11.8 percent); manufacturing (1.0 percent), and financial and insurance activities (6.7 percent).

Consumer loans to residents rose by 19.6 percent, although slower than 20.5 percent in the previous month, reflecting a moderation in credit card and motor vehicle loans.

The BSP monitors bank loans because they are a key transmission channel of monetary policy.