Bank loans extended to micro, small and medium enterprises as well as to large enterprises, which qualify as compliance with the reserve requirements, soared close to 100 billion pesos as the Bangko Sentral ng Pilipinas continues to extend regulatory relief measures amid the COVID-19 pandemic.
According to the BSP, loans extended by more than 100 banks to MSMEs and large enterprises, which qualify as an alternative mode of compliance with the reserve requirement ratio, amounted to 96.5 billion pesos as of July 23.
BSP Governor Benjamin Diokno said the rising amount indicates that banks have continued to grant new loans or re-finance existing ones to MSMEs and large enterprises even through the quarantine.
Diokno said, “We see this contributing positively to whole-of-nation efforts to mitigate the economic impact of the health crisis.”
Loans to MSMEs and large enterprises reached 84.2 and 12.3 billion pesos, respectively.