Most banks in the Philippines expect demand for business loans to stay stable in the first quarter of 2026, although fewer institutions share this outlook compared with the previous quarter, according to the Bangko Sentral ng Pilipinas’ Senior Bank Loan Officers’ Survey.
About 70.2% of banks anticipate steady business loan demand in Q1 2026, declining from 80.7% in Q4 2025. Meanwhile, 28.1% expect demand to grow, up from 14.0% in the prior quarter, whilst only 1.8% foresee a decline, compared with 5.3% previously.
Banks are largely expected to keep credit standards unchanged for both corporate and consumer borrowers in Q1 2026.
For business lending, 87.7% of banks plan to maintain existing credit standards, slightly higher than 86.0% in the previous quarter. Among the rest, 10.5% intend to tighten lending rules, whilst 1.8% expect to loosen them.
For household loans, 79.5% of banks expect to retain current credit standards, lower than 82.5% in Q4 2025. The remaining respondents are divided between 12.8% planning to tighten standards and 7.7% intending to ease them.
Among banks expecting changes to lending policies, more anticipate tightening than easing. A net 8.8% expect stricter credit standards for business loans in Q1 2026, down from a net 14.0% in the previous quarter. For household loans, the net expectation for tighter standards stands at 5.1%, compared with 7.5% in Q4 2025.
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