Bank lending grows 10.7% in March, BSP reports

Loans from universal and commercial banks expanded by 10.7 percent year-on-year in March 2026, accelerating from a revised 9.6 percent in February, the Bangko Sentral ng Pilipinas (BSP) said Monday.

Preliminary BSP data showed outstanding loans of universal and commercial banks (U/KBs), net of reverse repurchase (RRP) agreements, reached PHP 14.6 trillion in March from PHP 13.19 trillion a year earlier.

On a month-on-month and seasonally adjusted basis, outstanding U/KB loans rose by 1.7 percent in March.

The BSP said the faster pace of lending provided stronger support for production activities of businesses and household consumption.

Loans for business activities grew by 9.7 percent in March from 8.6 percent in February, reaching PHP 12.32 trillion.

Lending rose across several key industries, led by electricity, gas, steam, and air-conditioning supply at 26.7 percent, with outstanding loans of PHP 2.01 trillion.

Loans to the transportation and storage sector expanded by 19.4 percent to PHP 596.38 billion, while lending to wholesale and retail trade, and repair of motor vehicles and motorcycles, grew by 9.3 percent to PHP 1.62 trillion.

Real estate activities — the largest single industry borrower — posted an 8.8-percent increase to PHP 2.9 trillion, accounting for 19.8 percent of total outstanding loans net of RRPs.

Other notable gains were recorded in mining and quarrying at 24.0 percent, water supply, sewerage, waste management and remediation activities at 26.5 percent, and professional, scientific and technical services at 23.6 percent.

Lending to manufacturing contracted by 3.3 percent, while construction loans fell by 5.4 percent and education loans declined by 2.0 percent.

Consumer loans to residents grew by 20.5 percent in March, slightly slower than the 20.8 percent posted in February.

The BSP attributed the deceleration to slower growth in motor vehicle loans, which expanded by 12.5 percent from 13.9 percent, and salary-based general-purpose consumption loans, which rose by 4.2 percent from 5.6 percent.

Credit card loans continued to lead consumer lending, growing by 27.9 percent to PHP 1.23 trillion.

Outstanding loans to residents grew by 11.1 percent in March from a revised 10.2 percent in February.

Outstanding loans to non-residents declined by 5.9 percent, easing from a 13.2-percent contraction in the previous month.

The BSP said it monitors bank loans because they are 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.