Most PH banks to keep credit standards steady in Q1 2026, BSP survey shows

Majority of Philippine banks expect to keep their credit standards unchanged for both businesses and households this year as demand is projected to be sustained, results of a survey released Friday by the Bangko Sentral ng Pilipinas (BSP) showed.

According to the Senior Bank Loan Officers' Survey (SLOS), 87.7% of banks anticipate that they will keep their credit standards unchanged in the first quarter of the year, higher than the 86.0% in the last quarter of 2025.

Credit standards refer to the rules banks use when giving loans such as interest rates, loan sizes, collateral, loan conditions, and repayment terms.

The remaining respondents were split, with 10.5% expecting a tightening of standards, and 1.8% projecting an easing.

"This indicates that any future change in credit standards is more likely to reflect tighter than looser credit standards," the BSP said in an accompanying statement.

This comes as the majority or 70.2% of banks see a steady outlook for business loan demand, down from 80.7% in the fourth quarter of 2025. Some 28.1% expect an increase in demand, while 1.8% anticipate a decline.

For household loans, 79.5% of banks expect to retain credit standards this quarter, lower than the 82.5% in the previous quarter. Some 12.8% expect to tighten, while 7.7% see easing.

Survey results show that 61.5% of respondents expect steady household loan demand, while 30.8% expect an increase. The remaining 7.7% project a fall.

Responses for the survey were gathered from November 27, 2025 to January 16, 2026, with a total of 58 respondent banks out of 60 surveyed banks, reflecting a 96.7% response rate. — VDV, GMA Integrated News