Banks seen keeping lending standards steady in Q3

Most Philippine banks expect to maintain their lending standards in the third quarter of 2026, signaling continued stability in the country’s banking system despite lingering geopolitical uncertainties, according to the latest Bangko Sentral ng Pilipinas (BSP) survey.

Results of the BSP’s Senior Bank Loan Officers’ Survey (SLOS), released on Thursday, showed that 75.5 percent of respondent banks expect no change in credit standards for enterprise loans, while a majority also foresee stable lending standards for household loans.

The survey likewise indicated that fewer banks expect to tighten lending standards compared with the previous quarter, while a small number anticipate easing credit requirements for business borrowers.

Using the modal method, the BSP found that 64.2 percent of banks expect demand for enterprise loans to remain unchanged in the third quarter, while 30.2 percent project an increase and only 5.7 percent foresee a decline.

Compared with the previous quarter, more banks expect stronger demand for business loans, driven by higher inventory and accounts receivable financing needs, as well as an improved economic outlook among borrowers.

The BSP said the survey results point to generally stable credit conditions, reflecting banks’ continued prudence in managing credit risks amid an evolving economic environment.

Using the diffusion index method, however, the central bank noted that banks still maintain a net tightening bias for both business and household loans.

Respondents cited a less favorable economic outlook, lower risk tolerance and a deteriorating borrower profile as the main reasons for maintaining a cautious lending stance.

The SLOS gathers the views of bank loan officers on lending standards and factors affecting the supply of and demand for loans to businesses and households. A total of 56 banks participated in the latest survey.