Most Philippine banks intend to maintain their current credit standards for both businesses and households through the first quarter of 2026, according to the latest Senior Bank Loan Officers’ Survey released by the Bangko Sentral ng Pilipinas (BSP).
Credit standards serve as the internal benchmarks banks use to determine loan approvals, encompassing factors such as interest rates, collateral requirements and repayment terms.
The survey, which gathered insights from senior loan officers at 58 universal, commercial, thrift and rural banks, found that 87.7 percent of lenders expect to keep business loan standards unchanged.
The figure is slightly higher than the 86.0 percent recorded in the final quarter of 2025. Among the remaining respondents, 10.5 percent anticipate tightening standards, while 1.8 percent expect an easing.
For household loans, 79.5 percent of banks plan to retain existing credit norms, down from 82.5 percent in the previous quarter. The BSP report noted that 12.8 percent of banks expect to tighten household lending rules compared to 7.7 percent that may loosen them.
While the majority of banks favor stability, the net tightening balance suggests a slight lean toward more restrictive lending. For business loans, the net tightening expectation stands at 8.8 percent, down from 14.0 percent in the fourth quarter of 2025. Household loans show a net tightening of 5.1 percent, a decrease from the 7.5 percent seen in the prior period.
Loan demand is expected to remain largely stable, but more banks are anticipating growth in credit applications compared to the end of 2025. About 70.2 percent of banks see steady demand for business loans, while 28.1 percent expect an increase, up from 14.0 percent in the previous quarter.
In the household sector, 61.5 percent of respondents predict steady demand, while 30.8 percent anticipate a rise in loan requests. Only 7.7 percent of banks expect household demand to fall, marking a lower percentage than the previous quarter.
