Bank Lending Growth Moderates in January 2026, BSP Keeps Watch
Preliminary data released by the Bangko Sentral ng Pilipinas (BSP) indicates that loans from universal and commercial banks (U/KBs) increased at a slower annual rate of 9.3 percent in January 2026, compared to a revised 9.6 percent growth in December 2025. This slight deceleration highlights evolving trends in the banking sector as economic conditions shift.
Monthly and Sectoral Lending Insights
After adjusting for seasonal factors, outstanding U/KB loans rose by 1.0 percent month-on-month in January, suggesting continued but measured expansion. A closer look at the data reveals divergent patterns between resident and non-resident lending. Outstanding loans to residents grew by 9.9 percent in January, down from a revised 10.1 percent in December, while loans to non-residents fell by 10.4 percent, worsening from an 8.0 percent decline in the prior month.
Business loans, a critical driver of economic activity, expanded by 8.2 percent in January. Key industries saw notable increases:
- Real estate activities: 9.1 percent
- Electricity, gas, steam, and air-conditioning supply: 20.3 percent
- Wholesale and retail trade, repair of motor vehicles and motorcycles: 8.3 percent
- Financial and insurance activities: 5.5 percent
- Information and communication: 4.9 percent
- Transportation and storage: 19.1 percent
Consumer Lending and BSP Oversight
Consumer loans to residents, encompassing credit card, motor vehicle, and general-purpose salary loans, maintained robust growth at 21.3 percent in January, slightly down from a revised 21.5 percent in December. This sustained high rate reflects ongoing demand in the consumer sector.
The BSP closely monitors bank loans as a key transmission channel for monetary policy, ensuring they align with broader economic goals. Looking ahead, the central bank will continue to oversee domestic liquidity and bank lending conditions to uphold its mandates for price and financial stability, adapting to emerging economic signals.
