MOST Philippine banks expect credit standards and loan demand to remain steady in the fourth quarter of 2026, results of the latest Senior Bank Loan Officers’ Survey (SLOS) of the Bangko Sentral ng Pilipinas (BSP) show.
In a statement on Friday, the central bank said that for the fourth quarter of 2026, 80.8 percent of respondent banks expected unchanged credit standards for enterprise loans, while 85.7 percent expect steady standards for household loans.
BSP pointed out these are higher than figures posted in the third quarter of 2026 at 71.2 percent and 77.1 percent for enterprise loans and household loans, respectively. This, it noted, indicates a shift toward ‘more stable’ lending standards.
Among banks expecting changes in credit standards, the central bank said the bias toward tightening has ‘moderated’ both enterprise and household loans.
A small share of banks also expects to ease their credit standards, the BSP also noted.
Respondents cited uncertainty over the economic outlook, deterioration in borrower profiles, and lower risk tolerance as factors that could lead to tighter standards.
Meanwhile, banks also expect overall loan demand to remain steady in the fourth quarter of 2026, with signs of ‘stronger demand.’
For enterprise loans, 69.2 percent of respondents expect demand to remain unchanged, 26.9 percent expect an increase, and 3.8 percent expect a decline.
Compared with the third quarter, fewer banks expect ‘unchanged demand’ and more expect demand to increase.
‘The expected increase in enterprise loan demand reflects higher financing needs for inventories and accounts receivable, as well as limited access to other funding sources,’ BSP said.
For households, banks expecting stronger loan demand cited higher household consumption, more attractive bank financing terms, and increased housing investment.