PHILIPPINE BANKS’ lending to businesses and consumers marked its fastest expansion in seven months in March, preliminary Bangko Sentral ng Pilipinas (BSP) data showed.
Outstanding loans of universal and business banks, net of reverse repurchase agreements, grew by 10.7% to P14.603 trillion as of March from P13.192 trillion in the identical month last 12 months.
This was faster than the revised 9.6% climb in February and was the quickest loan growth posted because the 11.2% in August.
On a seasonally adjusted basis, big banks’ lending activities rose by 1.7% month on month.
“Loans from universal and business banks grew at a faster pace in March 2026, providing even stronger support for production activities of companies and consumption of households,” the central bank said in a press release late Monday.
Lending to residents went up by 11.1% 12 months on 12 months to P14.299 trillion from P12.869 trillion previously. This was an improvement from the revised 10.2% in February.
A lot of the loans were prolonged for production activities, which climbed by 9.7% to P12.322 trillion from P11.228 trillion previously.
The expansion was driven by 26.7% annual increase lending to the electricity, gas, steam, and air-conditioning supply industry. Other segments that showed growth in lending include transportation and storage (19.4%); wholesale and retail trade, repair of motorcars and motorcycles (9.3%); and real estate activities (8.8%).
Meanwhile, big banks’ consumer loans to residents rose by 20.5% to P1.977 trillion in March from P1.641 trillion a 12 months ago, barely easing from the 20.8% expansion in February. These include bank card, motorized vehicle, and general-purpose salary loans but exclude residential real estate loans.
BSP data showed lending via bank cards jumped 27.9% to P1.229 trillion from P960.55 billion the prior 12 months, while loans for motorcars grew by 12.5% to P538.286 billion from P478.67 billion.
For salary loans, banks lent out a complete of P166.934 billion, up 4.2% from P160.273 billion last 12 months.
Then again, outstanding loans to nonresidents, including those disbursed by big banks’ foreign currency deposit units, declined by 5.9% to P303.993 billion in March from P323.028 billion a 12 months earlier. This was smaller than the 13.9% drop logged in the identical month in 2025.
The central bank monitors banks’ lending activities to trace the transmission of monetary policy.
“Looking ahead, the BSP will be sure that domestic liquidity and bank lending conditions remain aligned with its price and financial stability objectives,” the BSP said.
FASTER MONEY SUPPLY GROWTH
Liquidity growth also picked up in March to 12% from 10.3% in February, in accordance with separate central bank data.
Domestic liquidity or M3 — a measure of the amount of cash within the economy that features currencies in circulation, bank deposits, and other financial assets easily convertible to money — rose to P20.365 trillion from P18.181 trillion last 12 months.
Month on month, M3 inched up by 1.7% on a seasonally adjusted basis.
“Domestic liquidity growth was driven primarily by the continued expansion in borrowings by non-financial private corporations and households,” the BSP said.
Domestic claims, which include those from private and government sectors, got here in higher by 11.5% to P23.068 trillion in March from P20.685 trillion the previous 12 months.
This as claims on the private sector stood at P14.804 trillion in the course of the month, with growth quickening to 11.8% from 10.6% in February.
Meanwhile, the central government’s increased issuances of presidency securities boosted its net claims to P6.258 trillion, up 12.1% 12 months on 12 months from P5.581 trillion.
Claims on a sector seek advice from that sector’s liabilities to depository corporations corresponding to banks and the central bank.
Preliminary BSP data also showed that net foreign assets (NFAs) in peso terms grew by 8.6% to P7.391 trillion from P6.808 trillion a 12 months prior.
The central bank’s NFAs edged up by 4.9% to P6.445 trillion, while banks’ NFA position climbed slower by 4.2% to P946.141 billion amid lower foreign currency-denominated bills.
NFAs reflect the difference between depository corporations’ claims and liabilities to nonresidents. — Katherine K. Chan