Bank lending in the Philippines grew at a faster pace in March as universal and commercial banks extended more credit to businesses, while consumer loan growth showed signs of easing as auto and salary-based borrowing slowed.
Preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed loans of universal and commercial banks rose 10.7% year-on-year in March 2026, faster than the revised 9.6% increase in February.
On a seasonally adjusted basis, outstanding loans increased 1.7% from the previous month.
The BSP data showed credit continued to flow into the economy even amid elevated inflation risks, with business lending driving most of the expansion.
Loans for production activities rose 9.7% in March, faster than the 8.6% growth in February.
Lending to the electricity, gas, steam and air-conditioning supply sector jumped 26.7%, while loans to transportation and storage increased 19.4%.
Credit to wholesale and retail trade, including repair of motor vehicles and motorcycles, rose 9.3%, while lending to real estate activities increased 8.8%.
Consumer lending, however, moderated despite remaining in double-digit growth.
Loans to resident consumers rose 20.5% in March, slightly slower than the 20.8% growth in February.
The BSP said the easing was driven by slower growth in motor vehicle loans and salary-based general purpose consumption loans.
Motor vehicle loans grew 12.5% in March, down from 13.9% in February, while salary-based general purpose consumption loans slowed to 4.2% from 5.6%.
Credit card lending remained strong, rising 27.9% in March from 27.3% in the previous month.
Overall loans to residents grew 11.1% in March, faster than the revised 10.2% increase in February. Loans to non-residents continued to contract but at a slower pace of 5.9%, compared with a 13.2% decline in the previous month.
The BSP said bank lending remains a key channel for the transmission of monetary policy to the economy.
“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.
