BusinessWorld’s 1st Quarter Banking Report for 2026 explores the impact of the Middle East conflict and the resulting global energy shock on the Philippine financial system. As March inflation accelerated to a two-year high of 4.1% and Q1 GDP growth slowed to a post-pandemic low of 2.8%, the report details an oil shock paradox where total assets across 44 universal and commercial banks still expanded by 9.52% year-on-year to ₱29.4 trillion and total loans surged 11.44% to ₱15.63 trillion. Also covered in this report include how lenders are moving away from purely collections-focused approach toward flexible, relief-oriented credit strategies, as well as a consumer pivot from saving to surviving marked by an explosion in Buy Now, Pay Later (BNPL) adoption for daily essentials. The latest financial markets outlook and bank stocks prospects complete the issue.