Bank lending growth in the Philippines accelerated in August 2026, driven by sustained credit demand from key business sectors, according to data released by the Bangko Sentral ng Pilipinas (BSP).
Total outstanding loans issued by universal and commercial banks (U/KBs), net of reverse repurchase agreements (RRPs), expanded by 11 percent year-on-year in August, picking up pace from the 10.4 percent growth recorded in July.
Outstanding loans granted to residents, which make up the vast majority of total commercial bank credit, grew by 11.3 percent year-on-year during the month.
Loans for production and business activities grew by 10.6 percent in August, supported by credit expansion across major industries including real estate; electricity, gas, steam, and air-conditioning supply; wholesale and retail trade; financial and insurance activities; manufacturing; information and communication; and transportation and storage.
In contrast, consumer lending growth to resident households slowed slightly during the period, reflecting moderated expansion in credit card originations and motor vehicle financing.
The BSP monitors commercial bank lending growth as a primary channel for transmission of monetary policy into the broader economy.
Moving forward, the central bank reiterated its commitment to ensuring that credit and liquidity conditions remain aligned with its price stability objectives and overall financial system soundness.