Loan growth in the Philippines is picking up pace, but industry players warn that expansion must be matched by stronger data-driven safeguards to prevent rising credit risks.
More Filipinos and businesses are now accessing formal credit, reflecting deeper financial inclusion and improving economic participation. However, this momentum also places renewed pressure on lenders to ensure that growth remains sustainable.
Latest data from the Bangko Sentral ng Pilipinas (BSP) shows that bank lending expanded by 9.5% in February 2026, driven by both consumer and business demand. While the figures signal continued economic activity, they also highlight growing exposure in an increasingly uncertain global environment.
In periods of volatility, credit demand typically rises. Businesses tap financing to sustain operations or cover unexpected costs, while households increasingly rely on loans to manage higher living expenses. In such conditions, speed often becomes a priority in credit decisioning — sometimes at the expense of full risk assessment.
Industry stakeholders caution that when lending accelerates without sufficient safeguards, it can lead to mispriced risk, overleveraged borrowers, and long-term pressure on financial system stability.
“Strong loan growth is encouraging, but it must go hand in hand with responsible lending,” explained Pia Arellano, President and CEO of CIBI Information Inc., in an interview. “In uncertain environments, decisions are made faster, often with less room for error. Reliable data becomes critical to ensure that lending remains sound and borrowers are not taking on unsustainable debt.”
Data becomes a competitive advantage in lending
Pia Arellano, President and CEO of CIBI Information Inc.
As credit activity expands, access to accurate, decision-grade data is becoming a key differentiator for financial institutions.
Credit bureaus play a central role in this ecosystem by consolidating and verifying borrower information, allowing lenders to better assess creditworthiness and financial behaviour. This helps reduce reliance on fragmented or incomplete data and supports faster, more confident lending decisions.
For financial institutions, this shift translates into more disciplined credit evaluation, improved portfolio quality, and better alignment between growth targets and risk management. Rather than slowing lending activity, stronger data infrastructure enables lenders to scale more responsibly.
A rapidly expanding credit market without robust information systems, however, risks becoming unstable. With stronger data foundations, lending can remain both dynamic and sustainable.
“Access to credit should create opportunities, not risks,” Arellano added. “Credit bureaus help make that possible by giving both lenders and borrowers the information they need to make better financial decisions. That’s what ultimately keeps the system working for everyone.”
CIBI: Strengthening financial resilience through data ecosystems
IMAGE CREDIT: CIBI
Beyond individual institutions, stakeholders note that stronger credit information systems have broader implications for financial inclusion and system stability.
A more connected data ecosystem can support fairer access to credit, improve lending transparency, and strengthen trust across the financial system. Over time, this helps ensure that credit expansion translates not only into higher lending volumes, but also into a more resilient and inclusive financial landscape.
CIBI Information Inc. is the Philippines’ pioneering credit reporting agency, established in 1982 under the Central Bank of the Philippines (now Bangko Sentral ng Pilipinas). Accredited by the Credit Information Corporation (CIC), CIBI serves as a trusted intelligence partner to more than 500 organizations across various industries.
With a team of over 200 professionals, CIBI provides solutions that support greater access to credit and employment opportunities for Filipinos. Acquired by Creador in 2020, CIBI has since partnered with global firms such as FICO, GDS, and Smart Consulting, and works closely with CTOS in Malaysia to integrate international best practices into the local market.
CIBI remains focused on advancing financial inclusion and strengthening the country’s credit information infrastructure.
For more information, visit www.cibi.com.ph.
