Philippine banks intend to maintain credit standards largely unchanged throughout the third quarter of 2026, though a net tightening bias persists due to economic uncertainty. According to the Bangko Sentral ng Pilipinas’ (BSP) latest Senior Bank Loan Officers’ Survey, 75.5% of institutions plan to keep current requirements for corporate loans, while 80% expect stable terms for retail borrowers—reflecting greater overall stability than in Q2.

While fewer institutions report plans to adjust credit criteria, those anticipating stricter guidelines cited a softer economic outlook, reduced risk appetite, and weaker borrower profiles. Nevertheless, the overall degree of net tightening moderated across both enterprise and household loan segments compared to previous quarters.

On the borrowing front, demand for enterprise credit is expected to rise in Q3 2026. About 30.2% of surveyed lenders anticipate higher corporate demand—up from Q2—driven primarily by inventory financing, accounts receivable management, and growing optimism among business clients. Another 64.2% expect enterprise loan demand to stay flat.

Household credit demand is similarly poised to expand, supported by resilient consumer spending, residential property investments, attractive bank terms, and limited alternative financing options.

These findings stem from the BSP’s survey of 56 universal, commercial, thrift, and rural banks (representing a 93.3% response rate), conducted between June 3 and July 7, 2026.

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