Roughly one in three senior banking officials expects corporate credit demand to increase in the third quarter of the year as business clients seek additional financing to expand operations, according to a survey released by the central bank.

The Bangko Sentral ng Pilipinas (BSP) reported that while 64.2 percent of surveyed senior loan officers anticipate enterprise loan demand to remain steady from July to September, 30.2 percent foresee an acceleration.

Only 5.7 percent project a contraction in business borrowing over the period. The quarterly Senior Bank Loan Officers’ Survey sampled 56 officials across universal, commercial, thrift, and rural institutions.

The BSP noted that the anticipated rise in business loan demand is largely due to “higher customer inventory financing needs, higher accounts receivable financing needs, and an improved customer economic outlook.”

This upbeat demand outlook comes alongside continued stability in bank credit operations.

“Most Philippine banks expect to maintain their lending standards in the third quarter, indicating the banking system’s stability and capacity to support the economy through credit despite persistent geopolitical uncertainty,” the central bank said.

Specifically, 75.5 percent of respondents indicated they would maintain current credit standards for enterprise loans, while 80 percent expect stable standards for household loans. These figures mark an improvement from the previous quarter, signaling a more predictable environment for borrowers.

While the majority plan to keep standards unchanged, the survey noted a "moderation in the tightening bias among banks for loans to both enterprises and households"—suggesting that even among institutions leaning toward stricter requirements, the momentum behind that shift is cooling.

However, lenders remain alert to potential external shocks. Respondents noted that a "less favorable or more uncertain economic outlook," paired with reduced risk tolerance or a deteriorating borrower profile, would trigger a shift toward tighter lending rules.

Consumer borrowing is also set to climb, with around a third of banks anticipating an increase in household loan demand. The central bank attributed this uptick to "stronger household consumption, lack of other sources of funds, higher housing investment, and more attractive bank financing terms."