Bank lending and domestic liquidity expanded at a faster pace in March 2026, reflecting stronger economic activity and sustained demand from businesses and households, according to preliminary data released by the Bangko Sentral ng Pilipinas.
Outstanding loans issued by universal and commercial banks grew by 10.7 percent year-on-year in March, faster than the revised 9.6-percent expansion recorded in February.
Seasonally adjusted data also showed bank lending rising by 1.7 percent month-on-month in March.
The BSP said lending growth continued to support production activities and consumer spending across the economy.
Loans for business activities increased by 9.7 percent in March from 8.6 percent in February, driven by stronger lending to key sectors including real estate, electricity and utilities, wholesale and retail trade, and transportation and storage.
Real estate loans grew by 8.8 percent, while lending to the electricity, gas, steam, and air-conditioning supply sector surged by 26.7 percent.
Loans to wholesale and retail trade, including repair of motor vehicles and motorcycles, rose by 9.3 percent, while transportation and storage lending climbed by 19.4 percent.
Consumer loans to residents also remained strong, expanding by 20.5 percent in March, although slightly slower than February’s 20.8-percent growth due to softer demand for motor vehicle and salary-based consumption loans.
Outstanding loans to residents increased by 11.1 percent from the revised 10.2 percent in February.
Meanwhile, loans to non-residents declined by 5.9 percent, improving from the 13.2-percent contraction recorded in the previous month.
Alongside stronger lending activity, domestic liquidity or M3 — considered the broadest measure of money supply — grew by 12 percent year-on-year to P20.4 trillion in March, faster than the 10.3-percent increase in February.
On a seasonally adjusted basis, M3 also expanded by 1.7 percent month-on-month.
M3 includes currency in circulation, bank deposits, and other financial assets that can be readily converted into cash.
The BSP said liquidity growth was driven mainly by continued borrowing by non-financial private corporations and households.
Claims on the private sector rose by 11.8 percent in March from 10.6 percent in February.
Net claims on the central government also increased by 12.1 percent, supported largely by higher government securities issuances.
Net foreign assets in peso terms rose by 8.6 percent year-on-year in March from the revised 7.5 percent in February.
The BSP’s net foreign asset position expanded by 4.9 percent, while banks’ foreign asset holdings also improved, mainly due to lower foreign currency-denominated bills.
Meanwhile, the narrower M1 money supply measure, which includes currency in circulation and current account deposits, grew by 9.4 percent in March, faster than the 8.5-percent increase in February.
The BSP said it continues to monitor lending and liquidity conditions closely, noting that bank loans remain a key transmission channel of monetary policy.
“Looking ahead, the BSP will ensure that domestic liquidity and bank lending conditions remain aligned with its price and financial stability objectives,” the central bank said. PR
