Bank loans used as RRR compliance hit P6.4 B

Mid-sized and small banks have extended around P6.4 billion loans to micro, small and medium enterprises (MSMEs) as well as large companies, and booked these loans in compliance with their reserve requirement ratios, according to the Bangko Sentral ng Pilipinas (BSP).

- KEISHA TA-ASAN

"For the reserve week ending Feb15, thrift banks and rural and cooperative banks allocated an aggregate of P6.4 billion and P23.2 million loans to MSMEs and large enterprises, respectively, for compliance with the RRR," the BSP said.

The loans accounted for 0.5 percent and 0.002 percent of total required reserves.

Thrift, rural and cooperative banks continued to use their outstanding loans to MSMEs and large enterprises for RRR compliance despite the lapse of the central bank's temporary relief measure last year.