Loans extended by banks’ foreign currency deposit units (FCDUs) rose in the fourth quarter of 2025, reflecting steady demand for dollar funding from Philippine-based firms, according to the latest data from the Bangko Sentral ng Pilipinas (BSP).
In a recent statement, the central bank said FCDU loans reached $15.56 billion (about P933.6 billion) as of end-December 2025, up 2.9 percent from $15.13 billion (about P907.8 billion) in the previous quarter.
The increase was supported by higher lending activity during the quarter, with $8.32 billion (P499.2 billion) in new loans offsetting $7.87 billion (P472.2 billion) in repayments, resulting in a net expansion in outstanding credit. Philippine-based borrowers continued to account for the bulk of demand, comprising 66.8 percent of total FCDU loans, while the remaining share went to non-residents.
Among domestic sectors, merchandise and service exporters led with a 25.6-percent share, followed by transport and related industries such as trucking and forwarding (24.1 percent), and power generation companies (16.7 percent).
Most of the loans remained longer-term in nature, with 79.2 percent carrying maturities of more than one year, indicating continued use of foreign currency financing for investment and expansion activities.
Despite the quarter-on-quarter increase, FCDU loans were still 1.6 percent lower year-on-year, suggesting some moderation in foreign currency borrowing compared to 2024 levels.
This came even as foreign currency deposits continued to grow. FCDU deposit liabilities rose by 7.9 percent to $59.83 billion (about P3.59 trillion), highlighting ample dollar liquidity in the banking system.
FCDU loans are dollar-denominated credit facilities extended by local and foreign banks operating in the Philippines, typically used to finance trade, imports and other foreign exchange-related transactions.
The BSP said the latest data reflect sustained demand for foreign currency financing, particularly from export-oriented and infrastructure-related sectors, even as overall borrowing levels remain slightly below year-ago levels.