Loans from universal and commercial banks in the Philippines grew at a faster pace in March 2026, offering stronger support for business production and household consumption, according to preliminary data from the Bangko Sentral ng Pilipinas (BSP).
Loan Growth Accelerates
Bank lending expanded by 10.7% year-on-year in March, up from a revised 9.6% growth in February. On a seasonally adjusted basis, outstanding loans from universal and commercial banks rose by 1.7% month-on-month.
Business Loans Drive Expansion
Business loans increased by 9.7% in March compared to 8.6% in February. Key sectors contributing to this growth included real estate (8.8%), electricity and gas supply (26.7%), wholesale and retail trade (9.3%), and transportation and storage (19.4%).
Consumer Loans Remain Strong
Consumer loans to residents grew by 20.5% in March, slightly slower than February's 20.8% expansion. The moderation was attributed to weaker demand for motor vehicle loans and salary-based consumption loans.
Outstanding loans to residents rose by 11.1% in March, up from 10.2% in February. In contrast, loans to non-residents declined by 5.9%, improving from a 13.2% drop in the previous month.
BSP's Monetary Policy Role
The BSP emphasized that bank lending remains a crucial transmission channel for monetary policy. Looking ahead, the central bank will ensure that domestic liquidity and lending conditions stay aligned with its price and financial stability objectives.
