The Central Bank of the Philippines (Bangko Sentral ng Pilipinas, BSP) released the Q2 2025 Senior Bank Loan Officers’ Survey, showing that more banks expect to keep lending standards unchanged for both enterprises and households in the third quarter. Even so, the diffusion index continues to indicate a slight tilt toward tighter credit, though less pronounced than in the second quarter. For enterprise lending, 91.1% of respondent banks expected unchanged standards in Q3 (82.1% in Q2), with a net tightening of 5.4% (14.3% in Q2). For household lending, 85.0% expected unchanged standards (82.5% in Q2), with net tightening at 5.0% (12.5% in Q2). The BSP noted that credit standards cover factors including credit scores, income requirements, collateral, loan size, interest rates, and repayment periods. On demand, banks reported mostly steady business loan demand in Q2 (75.0%) and expected it to remain largely unchanged in Q3 (71.4%), while household credit demand was also mostly unchanged in Q2 (77.5%) and expected to be unchanged by 72.5% of banks in Q3, with no bank expecting a decline. The survey covered 49 respondent banks out of 60 surveyed.
Central Bank of the Philippines 2025-07-25
Central Bank of the Philippines SLOS shows most banks keeping Q3 lending standards unchanged with net tightening at 5.4% for enterprises and 5.0% for households
The Central Bank of the Philippines' Q2 2025 Senior Bank Loan Officers’ Survey indicates that most banks anticipate maintaining lending standards for enterprises and households in Q3, with a slight net tightening. For enterprise lending, 91.1% of banks expect unchanged standards, while 85.0% foresee the same for household lending. Business and household loan demand is expected to remain steady, with no banks predicting a decline.