Foreign currency deposit unit loans moderated in the third quarter of 2025, declining by 5.0 percent quarter-on-quarter to $15.13 billion, a measured adjustment that reflects prudent balance-sheet management amid shifting global and domestic financial conditions.
The decline of $802.09 million from the previous quarter’s $15.93 billion comes as banks and borrowers alike recalibrated funding needs while maintaining strong support for key economic sectors.
Despite the overall dip, Philippine-based borrowers continued to account for the bulk of foreign currency lending, receiving $9.59 billion or 63.4 percent of total outstanding loans. Export-oriented businesses remained among the biggest beneficiaries, with merchandise and service exporters securing $2.51 billion, underscoring the sector’s ongoing role in generating foreign exchange.
Logistics-related industries, including towing, tanker, trucking, forwarding, and personal services, followed with $2.05 billion, while power generation companies received $1.71 billion, highlighting sustained financing for critical infrastructure and energy supply.
Loan tenors continued to favor stability and long-term planning. Medium- to long-term loans with maturities exceeding one year made up 79.8 percent of total FCDU lending, an improvement from 79.0 percent in the previous quarter. This trend signals confidence in longer-horizon investments and reflects a financing structure aligned with capital-intensive and export-driven activities.
Underlying loan activity during the quarter remained robust. New loans amounted to $9.77 billion, nearly matching the $10.56 billion in repayments, pointing to active portfolio turnover rather than a sharp contraction in credit appetite.
On an annual basis, FCDU loans were down 3.9 percent, a modest adjustment that stands in contrast to the continued expansion of foreign currency deposits, which grew by 5.7 percent year-on-year to $60.73 billion.
The growth in deposits provides banks with ample foreign currency liquidity, positioning them to respond quickly as demand for dollar- and other foreign currency-denominated financing strengthens.
FCDU loans, which are extended by local banks and authorized foreign bank branches under the supervision of the Bangko Sentral ng Pilipinas, remain a vital funding channel for businesses and individuals engaged in trade, imports, and cross-border transactions.
Taken together, the latest figures point to a foreign currency lending market that is steady rather than strained, characterized by healthy deposit growth, a strong preference for longer-term financing, and continued support for sectors that drive exports, logistics, and energy.
As global conditions evolve, the FCDU system appears well-positioned to underpin economic activity that requires reliable access to foreign exchange.