Credit growth eases further in October

Credit growth eased for the fourth straight month to 10.3 percent in October from 10.5 percent in September, with loan demand moderating on softer business expansion and more cautious consumer activity.

- By KEISHA TA-ASAN

Preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed that loans disbursed by universal and commercial banks amounted to P13.79 trillion in end-October, up by P1.28 trillion from the P12.51 trillion recorded in the same period last year.

The October credit growth marked the slowest in 16 months or since the 10.1 percent expansion in June 2024.

Reyes Tacandong & Co. senior adviser Jonathan Ravelas said the downtrend highlights persistent headwinds.

“The slowdown reflects two things: lingering high borrowing costs and cautious sentiment amid uncertainty. Businesses are delaying expansion and consumers are prioritizing essentials,” he said.

He said that although the BSP's rate cuts provide some relief, their impact hinges on improved confidence and liquidity.