BSP extension lets banks write bigger green loans beyond 25% cap

Banks can exceed the single borrower’s limit by an additional 15%.

The Philippines’ monetary board has extended existing regulatory incentives that allow local banks to boost lending for green or sustainable projects.

The incentives, first released in 2023, allow banks to exceed the 25% single borrower’s limit (SBL) by an additional 15% for eligible sustainable projects, according to the Bangko Sentral ng Pilipinas (BSP).

The incentives will remain available for another two years beginning 6 January 2026.

The extended regulatory incentive period is expected to facilitate continued financing for renewable energy, water and wastewater systems, clean transportation, and climate‑resilient infrastructure, among other eligible activities, the BSP said in an online statement.

The BSP said that it is looking into recalibration of the risk weights for climate resilience-focused financing.

The central bank also shared plans to conduct a review of market conditions and any refinements needed to further scale adaptation financing and support the Philippines’ long‑term climate and development goals.​