BANK loans to micro and small enterprises (MSEs) remained below required levels as of the end of September, data from the Bangko Sentral ng Pilipinas (BSP) showed.
BANK loans to micro and small enterprises remained below required levels as of the end of September, data from the Bangko Sentral ng Pilipinas showed.The Magna Carta for MSMEs , or Republic Act 6977, mandates banks to set aside at least 8 percent of their total loan portfolio for MSEs and at least 2 percent for MEs.As of Sept. 30, banks should have set aside P879.26 billion for micro and small firms and P219.82 billion for medium enterprises out of a total loan portfolio of P10.99 trillion.
06 trillion of the industry's total loan portfolio, were supposed to lend P805.11 billion to MSEs and P201.27 billion to MEs.As of end-September, compliance was just at P127.08 billion for micro and small firms, P678.03 billion short, while P240.7 billion was lent to medium firms — P39.41 million more than what was required.Microenterprises are firms whose assets do not exceed P3 million, while small businesses are those with assets of more than P3 million but not exceeding P15 million.
Not Lending Enough To Small Firms
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