Banks in the Philippines have kept their overall credit standards unchanged for business and household loans during the second quarter of this year, as revealed by the Bangko Sentral ng Pilipinas’ Senior Bank Loan Officers’ Survey.
While loan demand has been on the rise, the survey indicates that most banks have retained their lending standards, with the diffusion index method showing a net tightening of loan standards for businesses and a net easing for consumer loans.
The survey noted increased lending demand and assessed various factors influencing the supply and demand for loans across enterprises and households.
Meanwhile, the survey also revealed that while overall standards remained unchanged, different methods indicated varying degrees of tightening or easing for certain types of loans, reflecting factors such as risk tolerance, economic outlook, and competition.
