Philippine lenders are bracing for a surge in credit appetite as the first quarter of 2026 approaches, with both corporate and retail borrowers signaling a heightened demand for capital.

According to the latest senior bank loan officers’ survey from the Bangko Sentral ng Pilipinas (BSP), around 28.1 percent of respondents expect enterprise loan demand to increase, up from 14 percent in the previous quarter.

Households are showing a similar appetite for credit, as nearly a third expect an increase in loan demand, higher compared with the results in the fourth quarter of 2025.

Despite this growing hunger for financing, domestic lenders are signaling a period of stability in their lending criteria. The BSP reports that “banks are generally inclined to maintain their credit standards for businesses and households for the first quarter of 2026.”

This steady hand is particularly evident in the corporate sector, where 87.7 percent of banks anticipate that they will keep their credit standards unchanged in the first quarter of 2026.

While “unchanged” remains the dominant theme, the underlying sentiment leans toward caution rather than leniency.

Analysts point to a subtle tightening bias among lenders, noting that “any future change in credit standards is more likely to reflect tighter than looser credit standards.”

Among those expecting to adjust their norms, a net 8.8 percent anticipate tightening for business loans, while a net 5.1 percent expect a similar path for household credit.

The move away from the status quo is reflected in the smaller share of banks expecting stable demand. More than three-fifths of respondents now expect household loan demand to hold steady, down from the fourth quarter of 2025.

With respondent banks operating amid rising demand and cautious supply, the credit environment at the start of 2026 appears robust but disciplined. (Derco Rosal)