FCDU loans fall to USD 15.13B in Q3 2025

Foreign currency deposit unit (FCDU) loans issued by Philippine banks declined by 5.0% quarter-on-quarter to USD 15.13 billion in the third quarter (Q3) of 2025, according to data released Dec. 29 by the Bangko Sentral ng Pilipinas (BSP).

The drop represents a decrease of USD 802.09 million from the previous quarter’s total of USD 15.93 billion.

Of the total outstanding loans, USD 9.59 billion or 63.4% went to Philippine-based borrowers, while the remaining balance was extended to non-residents. Key domestic recipients included:

• Merchandise and service exporters (USD 2.51 billion or 26.2%);
• Towing, tanker, trucking, forwarding, personal, and other industries (USD 2.05 billion or 21.4%);
• Power generation companies (USD 1.71 billion or 17.8%).

Medium- and long-term loans — those with maturities over one year — made up 79.8% of total FCDU credit, a slight increase from 79.0% in the previous quarter.

The BSP reported that as of end-September 2025, outstanding loans reflected USD 9.77 billion in new loan disbursements and USD 10.56 billion in loan repayments during the reference quarter.

On an annual basis, FCDU loan volume decreased by 3.9%.

This decline occurred despite a 5.7% rise in foreign currency deposit liabilities, which grew to USD 60.73 billion from USD 57.46 billion in the same quarter last year.

FCDU loans are foreign currency-denominated loans granted by local banks or the local branches of foreign banks authorized by the BSP.

These loans support businesses and individuals engaging in foreign exchange-related transactions, such as imports and overseas operations.

According to the BSP, the average interest rate for FCDU loans in Q3 2025 stood at 4.6365%, slightly lower than the 5.1213% rate recorded in the second quarter.

The overall loans-to-deposits ratio also dropped to 24.9% from 27.4% the previous quarter, indicating more cautious borrowing behavior relative to deposit growth.

For further information, stakeholders may contact the BSP International Operations Department via email at id_fcdu_rep@bsp.gov.ph or visit www.bsp.gov.ph.