The Bangko Sentral ng Pilipinas (BSP) reported a three percent increase in loans extended by banks in the country to micro, small, and medium enterprises (MSMEs), reaching a total of P461.39 billion in the first half of 2023.
In comparison, MSME loans in 2022 amounted to P447.7 billion but remained below the required threshold.
The BSP’s recent report also revealed that the banking sector’s compliance ratio, as of the end of June, stood at 4.71%, significantly lower than the mandated 10% specified in Republic Act 6977, as amended by RA 8289 and RA 9501, also known as the Magna Carta for SMEs.
Further BSP data showed that disbursements to micro and small enterprises by Philippine banks increased by 8.4% to P189.08 billion, up from P174.36 billion. However, this amount still fell short of the mandated P783.74 billion or the required 8%, representing only a 1.93% compliance rate.
