Most Philippine banks expect lending standards and loan demand to remain broadly steady in the third quarter, signaling continued stability in the financial system despite persistent geopolitical uncertainty, according to the Bangko Sentral ng Pilipinas.
The central bank's latest survey of bank lending conditions, covering both demand and supply factors, showed that banks are cautious but not tightening credit terms significantly. The net tightening of lending standards is expected to be minimal, with most banks maintaining their current credit policies for households and businesses.
Analysts attribute the cautious optimism to the domestic economy's resilience and prudent risk management by banks, even as global uncertainties persist. The BSP survey serves as a key gauge for monetary policy decisions, as stable lending conditions support credit growth and economic activity.