Banks see higher loan demand in Q3

Banks still expect stronger loan demand from corporates and households for the third quarter despite the prevailing high interest rates, although the lenders see tighter credit standards for enterprises over the next quarter.

- KEISHA TA-ASAN

Based on the Senior Loan Officers’ Survey of the Bangko Sentral ng Pilipinas (BSP) for the second quarter, banks are expecting a net increase in overall loan demand both from corporate and household borrowers.

Despite the aggressive rate hikes delivered by the BSP, participating banks anticipate a net rise in credit demand from businesses in the third quarter using the diffusion index (DI).

“Bank participants anticipate a net rise in credit demand from businesses in the third quarter of 2024 given firms’ higher inventory and accounts receivable financing needs,” the central bank said.