BANKS in the Philippines are expected to keep lending standards largely unchanged in the first quarter of 2026, even as loan demand shows signs of improvement, according to the Bangko Sentral ng Pilipinas (BSP).
Results of the BSP’s Senior Bank Loan Officers’ Survey (SLOS) showed that 87.7 percent of banks plan to maintain their credit standards for business loans in the first quarter of 2026, slightly higher than the 86 percent recorded in the previous quarter.
Only 1.8 percent of banks expect to ease lending standards, while 10.5 percent anticipate tightening.
For household loans, 79.5 percent of banks said they would keep credit standards unchanged, lower than the 82.5 percent reported in the fourth quarter of 2025. About 12.8 percent expect tighter standards, while 7.7 percent foresee easing credit conditions.
Among banks that expect to adjust lending standards, the BSP said the balance of sentiment still points to tightening rather than easing, although at a slower pace than in the previous quarter. Net tightening expectations eased to 8.8 percent for business loans and 5.1 percent for household loans, compared with 14 percent and 7.5 percent, respectively, in the fourth quarter of 2025.
Meanwhile, banks reported a more upbeat outlook for loan demand.
About 28.1 percent of banks expect demand for business loans to increase in the first quarter of 2026, up from 14 percent in the previous quarter, while 70.2 percent see demand remaining steady. Only 1.8 percent anticipate a decline in demand.
For household loans, 30.8 percent of banks expect higher demand, while 61.5 percent foresee stable demand levels. The share of banks expecting weaker household loan demand fell to 7.7 percent.
BSP’s survey covered 58 universal, commercial, thrift, and rural banks, representing a 96.7 percent response rate, and reflects quarter-on-quarter changes in banks’ lending outlook. / KOC