Bank lending and domestic liquidity in the Philippines both posted stronger growth in April 2026, signaling continued momentum in credit activity across businesses and households, according to preliminary data from the Bangko Sentral ng Pilipinas (BSP).
Loans extended by universal and commercial banks (U/KBs) grew by 11.4% year-on-year in April, up from 10.7% in March. On a seasonally adjusted basis, outstanding loans also rose by 1.1% month-on-month, reflecting expectations of steady credit demand in the second quarter.
The expansion was driven by stronger lending to both business and consumer segments. Loans to residents increased by 11.8%, with business lending rising 10.7% as key industries continued to draw financing. These included electricity, gas, steam, and air-conditioning supply (up 25.8%), wholesale and retail trade (11.8%), real estate activities (8.1%), financial and insurance activities (6.7%), and manufacturing (1.0%).
Consumer lending also remained robust, expanding by 19.6% year-on-year, although slightly slower than the previous month. The BSP noted a moderation in growth for credit card and motor vehicle loans, suggesting a gradual cooling in some segments of household borrowing.
The central bank said bank lending remains a key channel for transmitting monetary policy to the broader economy.
Broad money supply rises as credit expands
Alongside credit growth, domestic liquidity continued to expand, with broad money supply (M3) rising by 12.2% year-on-year to ₱20.3 trillion in April. This was broadly steady compared to the 12.1% growth recorded in March.
Liquidity growth was primarily driven by increased borrowings by non-financial private corporations and households. Claims on the private sector grew by 12.6%, accelerating from 11.9% in the previous month.
At the same time, net claims on the central government rose by 15.1%, reflecting higher outstanding government securities and lower deposits held with the BSP and banks.
Net foreign assets in peso terms also increased by 8.9%, supported by gains in both the BSP’s external position and banks’ holdings of foreign currency-denominated securities.
Meanwhile, the narrower money supply measure (M1), which includes currency in circulation and demand deposits, grew by 8.6%, slower than the 9.5% recorded in March, indicating some moderation in highly liquid cash holdings.
The BSP said it will continue to monitor liquidity conditions to ensure they remain aligned with its price and financial stability objectives, as credit growth and money supply expansion continue to support economic activity.
