Most Philippine banks maintained their credit standards for loans to businesses and consumers in the first quarter of 2025, the Bangko Sentral ng Pilipinas (BSP) said Friday.
Results of the Senior Bank Loan Officers’ Survey (SLOS) showed that 81.8 percent retained their credit standards for businesses based on the modal approach, a decrease from the previous quarter where 83.3 percent of respondents indicated unchanged loan standards.
The diffusion index approach, on the other hand, reflected fewer respondents reporting tighter credit standards in the first quarter of 2025 compared to the previous survey round. Banks tightened their loan standards for enterprises due to the deterioration in borrowers’ profile and profitability of banks’ portfolios.
Over the next quarter, the modal approach showed that 85.5 percent of participating banks anticipate generally unchanged lending standards for enterprises.
