The Bangko Sentral ng Pilipinas has extended regulatory relief allowing banks to exceed single borrower limits for green projects, while reviewing additional measures to further scale climate and adaptation financing.
The Bangko Sentral ng Pilipinas has approved an extension of regulatory incentives aimed at encouraging domestic banks to expand lending to sustainable projects, reinforcing its efforts to mobilise more capital towards climate-related investments. The Monetary Board authorised the continuation of a policy that allows banks to exceed the single borrower’s limit by an additional 15% when financing eligible green projects. First introduced in 2023, the incentives will now remain in place for a further two years from 6 January 2026. Under the framework, banks are permitted to go beyond the standard 25% single borrower limit provided that the excess exposure is channelled into sustainable activities.
The central bank said the extended availability of the incentives is expected to support ongoing financing for priority sectors that are critical to the country’s climate transition. These sectors include renewable energy generation, water and wastewater infrastructure, clean transport solutions and investments that strengthen climate resilience. Beyond the extension, the BSP signalled that it is evaluating additional measures to deepen climate finance, including a possible recalibration of risk weights applied to financing that supports climate resilience. The regulator also plans to undertake a review of prevailing market conditions to determine whether further refinements are necessary to scale up adaptation financing and align financial flows with the Philippines’ long-term climate and development objectives.
