Salary loan reforms are proving beneficial for thrift banks, according to industry officials. Philstar Biz reports that mid-sized banks are optimistic about sustained lending growth this year as credit demand continues to rise.
The reforms, which include extended repayment periods, have boosted borrower accessibility and bank portfolios. However, the industry is advocating for protective measures to ensure that longer salary loan terms do not lead to excessive debt burdens for consumers.
Bank officials emphasize the need for balanced growth, where credit expansion supports economic activity without compromising borrower financial health. The call for safeguards reflects a cautious approach amid rising household debt levels.