Bank lending growth in the Philippines eased to its slowest pace in nearly two years in January 2026, reflecting cautious borrowing and economic uncertainty, according to data from the Bangko Sentral ng Pilipinas (BSP).
Preliminary central bank figures showed that outstanding loans of universal and commercial banks grew by 9.3 percent year-on-year to ₱14.236 trillion in January, slower than the 9.6 percent growth recorded in December. This marked the weakest expansion in 23 months, signaling a moderation in credit demand.
Economists said the slowdown was partly driven by higher borrowing costs and increased caution among both banks and borrowers. Businesses have reportedly delayed expansion plans, while lenders have become more selective in approving loans amid global economic uncertainty.
Loans extended to residents reached about ₱13.939 trillion, with the majority going to production activities such as energy, transport, real estate, and trade. Meanwhile, consumer loans continued to grow strongly, supported by rising credit card use and vehicle financing.
Analysts also noted that weaker investment spending and slower economic activity have weighed on loan demand. At the same time, risks from global developments—including rising oil prices and geopolitical tensions—could further affect borrowing and investment decisions in the months ahead.
Despite the slowdown, the BSP said it will continue monitoring lending conditions closely to ensure that financial stability and adequate liquidity in the economy are maintained.
