The Market Monitor Minding the Nation's Business
The Chamber of Thrift Banks (CTB) expects the thrift banking sector to sustain its growth this year, driven by rising demand for credit and expanding financial inclusion initiatives.
Speaking on the sidelines of the CTB 2026 Convention in Makati City last week, CTB Convention Committee Chairman Manuel Santiago Jr. said the sector’s total assets have grown by 25 percent from a year ago to ₱1.4 trillion.
Santiago said the industry expects to maintain the same growth momentum through 2026 despite prevailing economic challenges. He attributed the outlook to the continued expansion of banking services and stronger demand for financing.
He noted that thrift banks’ core lending rose 26 percent last year to ₱977.32 billion. The increase reflected sustained lending to micro, small and medium enterprises (MSMEs), housing finance and consumer borrowers.
According to Santiago, financial inclusion remains the sector’s biggest growth driver. He said the rollout of new banking products and services is expected to further boost credit demand, particularly among underserved communities.
Santiago also said technological innovation is creating new opportunities for thrift banks. He stressed that the industry must integrate traditional banking, digital platforms and artificial intelligence (AI) to deliver a more seamless customer experience.
He added that AI can help automate routine tasks, strengthen compliance and risk management, and allow bank personnel to focus more on customer service.
Meanwhile, Santiago expressed support for the Bangko Sentral ng Pilipinas’ proposal to extend the maximum repayment period for salary-based consumption loans from three years to seven years. However, he said the longer repayment term should apply only to specific purposes.
He said loans for emergencies, home repairs, vehicle purchases and car repairs may qualify for the extended payment period. Such safeguards, he added, would help prevent borrowers from taking on excessive debt while ensuring responsible lending practices.