Banks’ loans to MSMEs rise to P536 B

Loans disbursed by banks to micro, small and medium enterprises (MSMEs) grew by 7.1 percent to P536.51 billion in the January to September period from P500.81 billion a year ago.

- By KEISHA TA-ASAN

Data from the Bangko Sentral ng Pilipinas (BSP) showed that the banking sector’s overall compliance ratio stood at 4.45 percent as of end-September.

This is below the previously required 10 percent under Republic Act 6977, as amended by RA 8289 and RA 9501 otherwise known as the Magna Carta for SMEs.

The BSP earlier clarified that the mandatory credit allocation expired on June 2018. This previously required banks to allocate at least eight percent of their loan portfolios to micro and small enterprises, and two percent to medium enterprises.

“However, the BSP continues to monitor banks’ MSME lending through quarterly exposure reports submitted by banks as part of its supervisory oversight and policy development,” the central bank said.