Most Philippine banks are expected to maintain current lending standards in the second quarter of 2026, signaling stable credit conditions despite ongoing global uncertainties, according to the latest survey by the Bangko Sentral ng Pilipinas (BSP).
Results from the Senior Bank Loan Officers’ Survey (SLOS) showed that a majority of banks plan to keep credit criteria unchanged for both business and household loans.
For business lending, 61.5 percent of respondent banks said they would maintain existing standards in the second quarter. This is higher than the 30.8 percent that expect to tighten lending and the 7.7 percent that plan to ease requirements. However, the figure is lower than the 71.2 percent recorded in the first quarter, pointing to a slightly more cautious stance among lenders.
A similar trend was seen in household lending, where 65.7 percent of banks indicated no change in standards. Meanwhile, 28.6 percent expect tighter requirements, while 5.7 percent anticipate easing. This reflects a modest shift from the previous quarter, when 77.8 percent reported unchanged standards.
The BSP’s diffusion index also indicated a net tightening bias, with business loans posting a 23.1 percent net tightening and household loans at 22.9 percent.
Despite this, loan demand is expected to remain steady. Around 53.8 percent of banks foresee no change in demand for business loans, while 34.6 percent expect an increase. For household loans, 52.9 percent project stable demand, with those expecting increases and declines evenly split at 23.5 percent each.
The BSP said the findings point to a stable credit environment, with banks balancing growth opportunities and risk management amid evolving domestic and global conditions.