Loans from universal and commercial banks rose by 12.1 percent year-on-year in May, higher than the previous month’s increase.

This reflects banks’ expectations of steady loan demand from businesses and households in Q2 2026.

Outstanding loans to residents grew by 12.6 percent year-on-year in May. Resident loans account for the bulk of total outstanding loans, while loans to non-residents constitute the smaller portion.[4]

Loans for business activities expanded by 11.7 percent in May. Lending increased for the following key industries: electricity, gas, steam, and air-conditioning supply (32.9 percent); real estate activities (7.3 percent); wholesale and retail trade, and repair of motor vehicles and motorcycles (10.1 percent); manufacturing (6.4 percent); and transportation and storage (21.4 percent).

Meanwhile, consumer loans to residents grew by 19.0 percent. This is slightly slower than the previous month’s 19.6-percent growth, reflecting softer expansion in credit card and motor vehicle loans.

The BSP monitors bank loans because they are a key transmission channel of monetary policy. Bangko Sentral ng Pilipinas