Foreign currency deposit unit (FCDU) climbed to US$15.56 billion in Q4 2025, reflecting a 2.9% increase or US$435.61 million from the previous quarter’s US$15.13 billion, according to latest data from the central bank.
The quarterly expansion highlights continued foreign currency lending activity even as the sector posted a 1.6% year-on-year decline, signaling a more cautious but still active cross-border credit environment.
Data from the Bangko Sentral ng Pilipinas (BSP) showed that domestic borrowers accounted for 66.8% of total outstanding FCDU loans, while the remainder was extended to non-residents.
Export, energy sectors dominate FCDU lending mix
IMAGE CREDIT: istockphoto.com
Among Philippine-based borrowers, the largest shares were attributed to key export- and infrastructure-linked sectors, including merchandise and service exporters (25.6%), towing, tanker, trucking, forwarding and other transport-related industries (24.1%), and power generation companies (16.7%).
The loan portfolio remained heavily skewed toward longer tenors, with medium- to long-term maturities (over one year) comprising 79.2% of total loans, slightly lower than the 79.8% recorded in the previous quarter.
On cash flow movements, outstanding FCDU loans during the quarter reflected US$8.32 billion in new loan availments against US$7.87 billion in repayments, underscoring steady refinancing and rollover activity in the system.
IMAGE CREDIT: bigstockphoto.com
While lending eased on an annual basis, foreign currency deposits continued to expand, rising 7.9% year-on-year to US$59.83 billion from US$55.46 billion, suggesting sustained FX liquidity within the banking system even amid shifting global conditions.
FCDU loans are foreign currency-denominated credit facilities extended by FCDUs of local banks and local branches of foreign banks authorized to conduct foreign exchange transactions. These facilities typically support import financing, trade-related activities, and other businesses with foreign currency obligations.
