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MANILA – Small businesses continue to gain access to financing from banks, especially after the Bangko Sentral ng Pilipinas (BSP) used borrowings to the sector as alternative compliance to reserve requirements.
BSP data show that as of July 29, banks extended a total of PHP188.7 billion to micro, small and medium enterprises (MSMEs), way higher than the PHP8.7 billion as of end-April 2020.
“These numbers suggest that banks continue to extend financial relief to borrowers during this crisis,” BSP Governor Benjamin Diokno said in a virtual briefing on Thursday.
The BSP has allowed banks’ MSME borrowings as alternative compliance to reserve requirements since last year.
This aims to increase banks’ liquidity and boost their ability to extend more loans to small businesses which are aimed at ensuring that economic activities remain robust despite the pandemic.
“Thus, customers are encouraged to approach banks regarding adjustments to their loan terms to match their cash flows and paying capacity,” Diokno said, adding borrowers may raise concerns on their financial transactions through the BSP’s Online Buddy (BOB), which is available at the BSP website.
Diokno said restructured loans of banks rose to PHP328.6 billion as of end-June this year from about PHP48.7 billion during the same period in 2020.
This increased the share of restructured loans on total loans to around 3.1 percent as of the first half this year from 0.5 percent a year ago, he added. (PNA)
