Published December 11, 2020, 2:57 PM
The Bangko Sentral ng Pilipinas (BSP) said it will limit the loans that banks can release to micro, small and medium enterprises (MSMEs) as part of alternative compliance with the reserve requirements (RR) to P300 billion, and P425 billion for large enterprises.
As of the reserve week ending November 12, MSME loans as alternative compliance to the RR has reached P123.6 billion. Loans to large enterprises, in the meantime, totalled P29.5 billion, based on preliminary data from the BSP.
In a statement Friday, BSP Governor Benjamin E. Diokno said that 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.”