THE Bangko Sentral ng Pilipinas’ (BSP) policy-setting Monetary Board (MB) has set limits in the amount of loans to micro, small, and medium enterprises (MSMEs) as well as to large enterprises (LEs) that may be utilized by BSP-supervised financial institutions (BSFIs) to serve as an alternative compliance with the reserve requirements (RR).
In a statement, the BSP said the aggregate loans to MSMEs and LEs utilized under the relief measure should not exceed P300 billion and P425 billion, respectively.
BSP Gov. Benjamin Diokno said the limits are calibrated based on different simulations and are meant to ensure that the use of loans as an alternative mode of compliance is in line with domestic liquidity conditions and projected growth.
“BSFIs are encouraged to continue to avail of the relief measures to sustain lending and financial support to viable MSMEs and large enterprises. Access to finance by these businesses will contribute to the recovery of the domestic economy and will help secure our envisioned path of sustainable and inclusive growth,” Diokno added.
Based on preliminary BSP data, the average amount of MSME loans and loans to LEs utilized by banks as compliance with the reserve requirements for the reserve week ending Nov. 12, 2020 were P123.6 billion and P29.5 billion, respectively.
“Existing guidelines allow BSFIs to utilize loans MSMEs and LEs as alternative compliance with RR until Dec. 29, 2022, subject to early closure, if warranted and with prior notice,” the central bank said.
“Once the set limits are reached prior to Dec. 29, 2022, the BSP will proceed to amend existing policy by closing the eligibility window on the use of the relief measure,” it said. (GMA News)
