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MANILA, Philippines – Filipinos’ borrowings are growing faster than their earnings, with regulators warning that the “imbalance” could erode households’ resilience to economic shocks and potentially create strains that may spill over into the banking system.
In its 2025 report released on Monday, the Financial Stability Coordination Council (FSCC) said retail loans expanded at an average annual rate of 15.7 percent between 2021 and 2025, with unsecured credit—driven largely by credit card borrowing and salary loans—surging 27.7 percent.
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Over the same period, household earnings that fuel consumption grew by just 5.8 percent.
