Bank lending accelerated to its fastest pace in nine months in April, fueled by the sharp rebound in credit demand from corporate borrowers and steady household spending.

Preliminary data released by the Bangko Sentral ng Pilipinas (BSP) showed that outstanding loans granted by universal and commercial banks grew 11.4 percent, higher compared to the 10.7% percent expansion in March.

The latest was the quickest pace of credit expansion since July 2025, when lending grew 11.8 percent, indicating that high domestic borrowing costs have yet to dampen economic momentum.

The central bank attributed the pickup to commercial lenders anticipating sustained appetite for credit from both corporate entities and households through the second quarter of 2026.

Broken down, the growth in outstanding loans to residents increased to 11.8 percent in April from 11.1 percent in March.

Meanwhile, the contraction in lending to non-residents widened to 7.9 percent from the 5.9-percent decrease seen in March. Non-resident loans include those extended by big banks’ foreign currency deposit units (FCDUs) to borrowers abroad.

Loans meant to fund business activities expanded by 10.7 percent during the month, up from 9.7 percent in March.

Growth across several major industries accelerated, with wholesale and retail trade (including motor vehicle repair) growing by 11.8 percent, compared to 9.3 percent in the prior month. Financial and insurance activities also saw faster growth at 6.7 percent, up from 4.4 percent.

Meanwhile, lending for electricity, gas, steam, and air-conditioning supply moderated to 25.8 percent from 26.7 percent in March. Real estate activities also eased modestly to 8.1 percent from 8.8 percent.

Consumer loans to residents—covering credit card, motor vehicle, and general-purpose salary loans—expanded at a slower rate of 19.6 percent in April, down from 20.5 percent in March. This easing was attributed to a slowdown in both credit card and motor vehicle loans.

Domestic liquidity (M3), the amount of money in the economy, grew by 12.2 percent in April to reach ₱20.3 trillion, sustaining the upward trend seen in March. M3 includes currency in circulation, bank deposits, and other financial assets easily convertible to cash.

Claims on the domestic sector remained a primary engine of money supply, rising by 12.7 percent in April from a revised 11.6 percent in March. In particular, claims on the private sector grew by 12.6 percent, up from a revised 11.9 percent, driven by continued bank lending to households and non-financial private firms.

Meanwhile, net claims on the central government increased by 15.1 percent during the month, up from a revised 12.3 percent in March, fueled by higher government security issuances and lower deposits with the BSP and banks.

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