Bank lending posts fastest growth in 15 months as loans reach ₱14.99 trillion

Outstanding bank loans climbed 12.1% in May, while money supply recorded its fastest growth since August 2020.

Philippine banks are lending at their fastest pace in over a year, a sign that many businesses are securing financing before borrowing becomes more expensive.

Bank lending climbed 12.1% to ₱14.99 trillion in May, the fastest annual growth in 15 months, according to preliminary data from the Bangko Sentral ng Pilipinas.

Lending to businesses reached ₱12.67 trillion, while consumer loans rose 19% to ₱2.02 trillion, driven by continued demand for credit despite a slight slowdown in credit card and auto loans.

The surge suggests companies are moving early to finance expansion, stock up on supplies, and prepare for higher costs as global tensions continue to cloud the economic outlook. Consumers are also continuing to borrow, keeping demand for homes, vehicles, and other big-ticket purchases alive.

Money supply also grew 12.8% to ₱20.6 trillion, its fastest pace since August 2020, supported by increased borrowing from both the government and the private sector.

If the trend continues, more money will keep circulating through the economy, but businesses may also race to lock in financing before future borrowing costs climb further.

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