MOST Philippine banks expect lending standards for businesses and households to remain steady in the fourth quarter of 2025, the Bangko Sentral ng Pilipinas (BSP) said, reflecting cautious optimism amid stable credit conditions.
In its latest Senior Loan Officers’ Survey, the BSP said 86 percent of banks plan to maintain lending standards for business loans, up from 78.9 percent in the previous quarter. About 10.5 percent expect to tighten standards, while 3.5 percent may ease them.
For household loans, 87.5 percent expect no change, up from 77.5 percent in the third quarter, while 10 percent foresee tighter standards and 2.5 percent looser ones.
A net seven percent of banks expect to tighten rather than ease business loan standards in the fourth quarter, down from 17.5 percent in the third quarter. For household loans, net tightening remained at 7.5 percent.
On demand, 73.7 percent of banks anticipate business loan demand to stay unchanged, while 24.6 percent expect an increase. For household loans, 65 percent see demand steady, with 25 percent expecting growth.
The BSP survey, which covered 58 banks, measures expectations on credit supply and demand, offering a snapshot of domestic lending sentiment heading into year-end. / KOC