Bank loans used as RRR compliance down to P8 B

Loans extended to micro, small and medium enterprises (MSMEs), as well as large companies, by mid-sized and small banks that are booked in compliance with their reserve requirements have declined to P8 billion, according to the Bangko Sentral ng Pilipinas (BSP).

- LAWRENCE AGCAOILI

Despite the lapse of the BSP's relief measure on the use of new or re-financed loans to MSMEs and large enterprises as alternative compliance with the reserve requirements against deposit liabilities and deposit substitutes in end-June, thrift banks, as well as rural and cooperative banks, were allowed to use their outstanding loans to MSMEs and large enterprises as RRR compliance until Dec. 31, 2025.

The BSP said thrift banks, as well as rural and cooperative banks, allocated a total of P8 billion and P6.5 million loans to MSMEs and large enterprises, respectively, for the week ending Oct. 19.