Foreign currency bank loans rise to USD 16.31B
Foreign currency loans extended by Philippine banks rose to USD 16.31 billion in the second quarter of 2026 as export-oriented firms and other industries increased borrowing, the Bangko Sentral ng Pilipinas said.
The 5.6% quarter-on-quarter increase highlights continued demand for foreign currency financing among companies whose operations involve imports, exports and other transactions denominated in foreign currencies.
The rise also matters for the broader economy because foreign currency loans help finance trade, power generation and other business activities, although borrowers can face added costs when the peso weakens against the U.S. dollar.
Outstanding foreign currency deposit unit, or FCDU, loans increased from USD 15.44 billion in the previous quarter.
The BSP said the increase was primarily driven by higher borrowing from export-oriented businesses and other industries.
Of the total outstanding FCDU loans, USD 11.65 billion, or 71.5%, went to Philippine-based borrowers.
The remainder was extended to non-residents.
Companies engaged in towing, tanker operations, trucking, forwarding, personal and other industries were the largest group of Philippine-based borrowers, accounting for USD 3.07 billion, or 26.3% of the domestic total.
Merchandise and service exporters accounted for USD 2.85 billion, or 24.5%.
Power generation companies borrowed USD 1.86 billion, equivalent to 16% of outstanding loans to Philippine-based borrowers.
Most FCDU loans had maturities exceeding one year.
Medium- to long-term loans represented 73.3% of total outstanding FCDU credit in the second quarter, down from 77.1% in the previous quarter.
Banks disbursed USD 11.99 billion in FCDU loans during the quarter.
Loan collections reached USD 11.20 billion over the same period.
Despite the quarterly increase, outstanding FCDU loans were 2.4% higher than a year earlier.
Foreign currency deposits, meanwhile, stood at USD 60.11 billion as of end-June.
The amount was 0.9% lower than the USD 60.67 billion recorded in the same period last year.
FCDUs are units of local banks or Philippine branches of foreign banks authorized by the BSP to conduct foreign currency transactions.
FCDU lending supports businesses and individuals that need foreign exchange for activities such as imports, exports and other foreign currency-denominated transactions. (BSP)
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