Manila: Lending by domestic financial institutions grew by 9.5 percent in February, slightly faster than the 9.3 percent recorded in January.
According to Philippines News Agency, the Bangko Sentral ng Pilipinas (BSP) reported that outstanding loans to residents rose 10.1 percent, an increase from January's 9.9 percent, while loans extended to non-residents saw a decline of 13.2 percent from the previous month's 10.4 percent.
Loans for businesses rose 8.6 percent from 8.2 percent in January. Growth was observed in key sectors, including water supply, sewerage, and waste management at 26 percent; electricity, gas, steam, and air-conditioning supply at 23.5 percent; transportation and storage at 19.3 percent; real estate at 9.0 percent; and wholesale and retail trade, including motor vehicle and motorcycle repair, at 8.2 percent.
Consumer loans experienced a slower pace of growth at 20.8 percent, easing from 21.3 percent in January, due to a decline in demand for credit card and motor vehicle loans.
Loans extended by banks' foreign currency deposit units (FCDUs) rose 2.9 percent in the fourth quarter of 2025 to USD15.56 billion, up from USD15.13 billion in the previous quarter. The BSP noted that 66.8 percent of these loans were allocated to Philippine-based borrowers, with the remainder extended to non-residents.
Among domestic borrowers, merchandise and service exporters received the largest share at 25.6 percent, followed by towing, tanker, trucking, forwarding, personal, and other industries at 24.1 percent, and power generation companies at 16.7 percent. Most FCDU loans, or 79.2 percent, were medium- to long-term, with maturities exceeding one year.
As of the end of December 2025, outstanding loans reflected US$8.32 billion in new loans and US$7.87 billion in loan payments made during the reference quarter, according to the BSP.
Domestic liquidity (M3) increased by 10.3 percent year-on-year to PHP19.8 trillion as of end-February, surpassing January's 8.6 percent growth. The BSP mentioned that claims on the domestic sector, covering both private and government entities, rose 11 percent from the previous month's 10 percent. Claims refer to the liabilities of these sectors to depository corporations such as banks.
