Outstanding loans granted by Foreign Currency Deposit Units declined slightly in the first quarter of 2026 as repayments exceeded new borrowings during the period, the Bangko Sentral ng Pilipinas said.
BSP data showed that outstanding FCDU loans dropped by 0.8 percent to $15.44 billion as of end-March 2026, lower by $122.25 million from $15.56 billion at the end of the previous quarter.
Philippine-based borrowers continued to account for the majority of FCDU lending, with $10.44 billion, or 67.6 percent of total outstanding loans. The remaining balance went to non-resident borrowers.
Among domestic borrowers, merchandise and service exporters remained the biggest recipients of FCDU loans, receiving $2.75 billion, equivalent to 26.4 percent of total loans to Philippine-based borrowers.
They were followed by companies engaged in towing, tanker, trucking, forwarding, personal, and other industries, which accounted for $2.51 billion, or 24 percent. Power generation companies ranked third with $1.85 billion, representing 17.7 percent of domestic outstanding loans.
The BSP said FCDU lending remained largely focused on longer-term financing. Loans with maturities of more than one year accounted for 77.1 percent of total outstanding loans as of end-March, slightly lower than the 79.2 percent recorded in the previous quarter.
From January to March, banks granted $8.25 billion in new FCDU loans, while borrowers made $8.36 billion in loan repayments. The higher level of repayments compared with new borrowings led to a decline in total outstanding loan balances.
FCDU loans are foreign currency-denominated loans extended by the Foreign Currency Deposit Units of local banks or local branches of foreign banks authorized by the BSP to engage in foreign currency transactions. These facilities support economic activities requiring foreign exchange, including financing for importers, exporters, businesses, and individuals engaged in foreign currency transactions.