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Banks’ loans to MSMEs rise as of Sept.
Business World Philippines
|December 10, 2025
PHILIPPINE BANKS extended more loans to micro, small and medium enterprises (MSMEs) at end-September.
Banks’ loans to MSMEs amounted to P536.51 billion at end-September, up 7.13% from the P500.809 billion disbursed in the same period last year, based on data from the Bangko Sentral ng Pilipinas (BSP). However, this was lower than the P540.92 billion in loans posted at end-June.
This made up 4.45% of the banking system’s P12,049-trillion loan book in the period.
Under Republic Act No. 9501 or the Magna Carta for MSMEs, banks must allocate 8% of their loan portfolio to micro and small enterprises (MSEs), and 2% to medium-sized businesses.
The mandated credit allocation lapsed in June 2018, or 10 years after the law was passed. However, the BSP continues to monitor banks’ lending to MSMEs as part ofits supervisory oversight and policy development.
Central bank data showed that loans to micro and small enterprises amounted to P225.17 billion at end-September, rising by 9.9% from P204.886 billion a year earlier. This accounted for 1.87% of banks’ portfolio.
Meanwhile, banks lent P311.34 billion to medium enterprises at end-September, making up 2.58% of their loan book. This was 5.21% more than the 295,923 billion disbursed a year ago.
This story is from the December 10, 2025 edition of Business World Philippines.
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