Bank lending in the Philippines grew by 12% in May, the fastest pace in 15 months, according to data reported by Philstar Biz. This marks the fourth consecutive month of acceleration in credit growth, driven by increased borrowing by businesses and resilient household credit.
The continued expansion signals that earlier monetary easing by the Bangko Sentral ng Pilipinas is beginning to filter through the broader economy. Lower interest rates have encouraged more borrowing for both working capital and investment purposes.
Analysts view the sustained credit growth as a positive indicator for economic activity, suggesting that businesses are more confident in taking on debt to expand operations. Household lending also remained steady, supporting consumption.