Most Philippine banks are expected to keep their lending standards unchanged in the final quarter of 2025, signaling continued confidence in the country’s credit environment, according to the Bangko Sentral ng Pilipinas (BSP).
Results of the central bank’s latest Senior Bank Loan Officers’ Survey (SLOS) showed that a greater share of lenders plan to maintain their credit standards for both business and consumer loans, reflecting a steady outlook for loan quality and borrower repayment capacity.
Lending standards refer to the criteria banks use to assess loans—covering interest rates, collateral requirements, repayment terms, and loan size.
Out of the 58 banks surveyed, 86 percent said they expect to keep their lending rules for business loans unchanged in the fourth quarter, up from 78.9 percent in the previous quarter. The remainder of respondents were divided between tightening and easing credit standards.
Similarly, 87.5 percent of banks foresee no change in lending rules for household borrowers, an improvement from 77.5 percent in the third quarter. About 10 percent anticipate tighter rules, while 2.5 percent may loosen them.
The survey also revealed that most banks expect loan demand to stay steady through year-end. About 73.7 percent of respondents said they expect business loan demand to remain unchanged, while the same percentage was recorded for household loan demand—slightly lower than the 75.4 percent reported in the previous quarter.
The BSP said the findings reflect an overall stable banking environment heading into 2026, as lenders continue to balance cautious risk management with support for credit growth amid improving domestic economic conditions.
