Credit growth quickens to 11.4% in September

MANILA, Philippines — Bank lending growth accelerated to a four-month high in September as demand for credit strengthened among businesses and remained robust among consumers.

Preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed loans extended by the country’s largest lenders grew by 11.4 percent year-on-year in September, faster than the 11 percent expansion in August.

The latest pace was the fastest since May 2026, when bank lending grew by 12.1 percent. Outstanding loans reached P15.27 trillion, up from P13.70 trillion a year earlier and P15.12 trillion in August.

Bank lending tracks credit extended to businesses, households and other borrowers. It is closely watched because stronger credit demand can support business investment and consumer spending, allowing monetary policy to filter through the broader economy.

Business lending drove the pickup, with loans for production activities growing by 11 percent to P12.84 trillion, faster than the 10.6-percent expansion in August.

Among major sectors, loans to electricity, gas, steam and air-conditioning supply increased by 26.6 percent to P2.14 trillion, while manufacturing credit jumped by 14.5 percent to P1.33 trillion.

Real estate, the largest borrowing sector, saw loans rise by 5.3 percent to P2.93 trillion.

Loans to transportation and storage climbed by 25.3 percent to P676.71 billion, while credit to financial and insurance activities increased by 8.2 percent to P1.19 trillion. Wholesale and retail trade loans rose by 7.3 percent to P1.68 trillion.

However, construction lending remained weak, contracting by 11.6 percent to P443.9 billion.

Meanwhile, consumer lending maintained its 16.2 percent growth in September, with outstanding credit reaching P2.11 trillion.

Credit card loans rose by 22.8 percent to P1.34 trillion, while motor vehicle loans grew by five percent to P542.03 billion. Salary-based general purpose loans accelerated by 17.5 percent to P193.80 billion.

“The BSP monitors bank lending as it serves as a key monetary policy transmission channel,” the central bank said.

Looking ahead, the BSP said it would continue to ensure that bank lending and domestic liquidity conditions remain consistent with its price and financial stability objectives.

Separate data showed money supply in the Philippines grew by 9.3 percent year-on-year to P20.7 trillion in September. This is slower than the 10.8 percent expansion seen a month prior.