BSP NOTES INCREASED MSME LOANS
Updated: Aug 12
The Bangko Sentral ng Pilipinas (BSP) today said there was increase in the amount of bank loans extended to micro, small and medium enterprises (MSMEs) as well as large enterprises that are booked in compliance with their reserve requirements (RR), following BSP’s relief measures to ease the impact of the COVID-19 pandemic.
“This indicates that banks have continued to grant new loans or re-finance existing ones to MSMEs and large enterprises even through the quarantine. We see this contributing positively to whole-of-nation efforts to mitigate the economic impact of the health crisis,’ said BSP Governor Benjamin E. Diokno.
Preliminary data revealed that for the reserve week ending 23 July 2020, 97 banks extended loans to MSMEs as an alternative mode of compliance with the RR with an average daily balance of P84.2 billion.
This is a substantial increase of 750.5 percent from the P9.9 billion average daily balance of MSME loans used by 55 banks immediately after the effectivity of the measure during the reserve week ending 30 April 2020.
Meanwhile, 13 banks provided loans to large enterprises as an alternative mode of compliance with the RR, with average daily loan balance of P12.3 billion based on preliminary data for the reserve week ending 23 July 2020.
This represents a significant increase from the P376 million average daily loan balance to large enterprises which was used by 12 banks during the reserve week ending 04 June 2020, the start of the effectivity of the measure.