Manila: The Chamber of Thrift Banks (CTB) anticipates continuous growth in the thrift banking sector's total assets this year. "The thrift bank sector has grown 25 percent from last year. In terms of assets, we're now at PHP1.4 trillion, and we expect this to continue until 2026 despite the current situation. We're expecting the same growth," stated CTB Convention Committee Chairman Manuel Santiago Jr. during the CTB 2026 Convention in Makati City.
According to Philippines News Agency, the previous year saw a 26 percent increase in the sector's core lending, reaching PHP977.32 billion. This rise reflects ongoing credit support for micro, small, and medium enterprises, housing finance, and consumer borrowers across the nation. Santiago emphasized that financial inclusion will be a significant driver of growth. "The basic driver here is financial inclusion. There's a lot of new services that are being offered, and I think this will drive... particularly the need for credit, and the thrift banks basically provide a lot of these," he noted.
Santiago expressed confidence that technological advancements will present opportunities for the industry. He highlighted the importance of creating a seamless customer experience by integrating traditional banking, digital channels, and artificial intelligence. For over five decades, thrift banks have adapted to economic crises, financial disruptions, and evolving customer expectations. Santiago believes that artificial intelligence can automate routine tasks, enhance compliance and risk management, and enable bank personnel to focus on customer service.
On the topic of salary loan repayment, Santiago indicated CTB's support for the central bank's recent decision to extend the maximum repayment period for salary-based consumption loans to seven years from three years. However, he clarified that not all salary loans should be eligible for this extension. "The main concern that is being worked on right now is that we want to avoid overburdening the borrowers," Santiago explained. Loans qualifying for extended repayment should be designated for emergency situations, home repairs, car purchases, and car repairs.
Santiago stressed the importance of balancing the purpose of loans eligible for the extended six to seven-year repayment period. "So, I think one of the key controls that we're looking at is being able to put specific purposes for those that will qualify for six and seven years," he said. "We need to balance the purpose of where the six and seven-year loans are going to be applied."
