Philippines faces credit boom risks as retail loans soar 23.5% in September
Consumer credit in the Philippines has surged, raising concerns about financial stability. Retail loans climbed by 23.5% to PHP 1.82 trillion in September, with credit card debt alone jumping nearly 30% to PHP 1.09 trillion. Yahoo Finance reports that regulators are now being urged to act before risks escalate further.
The ASEAN+3 Macroeconomic Research Office (AMRO) has warned that rapid credit growth could weaken lending standards or concentrate debt among vulnerable households. While the banking system remains stable for now, the organisation stresses that long-term risks are building.
The proposed measures aim to balance credit access with financial safety. If implemented, they could reduce risks from unchecked borrowing and protect both consumers and banks. Credit Karma suggests that regulators are expected to review the suggestions in the coming months.
