Lending norms across all sectors that include households and enterprises, indicated a retention in the third quarter of the year, the Bangko Sentral ng Pilipinas’ (BSP) latest senior bank loan officers’ survey show.

The outturn translates to the 42nd consecutive quarter of unchanged lending standard for the majority of banks surveyed by the BSP for the period.

“The diffusion index (DI) approach continued to indicate a net tightening of credit standards for loans to enterprises and households. In the previous quarter, credit standards for loans to both enterprises and households showed a net tightening based on the DI approach,” the survey said.

On lending to enterprises using the modal approach, which is based on the highest number of responses, the majority of banks or 81.6 percent, said they maintained their credit standards while a net tightening was seen based on the DI approach.

Also, 81.3 percent of lenders extending household loans have maintained their overall credit standards despite showing a net tightening when the DI approach is used.

According to the BSP, the tightening both for household and enterprise lending was traced to respondent banks’ view of stable economic outlook and steady tolerance for risk and unchanged profile of banks’ borrowers.

For the succeeding quarter, the survey bared similar expectations from respondent banks as such anticipate the same credit standards over the period.