MANILA, Philippines — The central bank is encouraging financial institutions to lend more to both small and large companies to help restore growth to the country’s economy, and it is doing so by setting a generous ceiling on the amount of loans that can be used to comply with bank reserve rules.
In a statement, the Bangko Sentral ng Pilipinas said its Monetary Board has set limits in the amount of loans to micro-, small- and medium enterprises and large enterprises that may be utilized by banks as alternative compliance with reserve requirements.Aggregate loans to small and large firms utilized under this relief measure should not exceed P300 billion and P425 billion, respectively.
“[Banks] are encouraged to continue to avail of the relief measure to sustain lending and financial support to viable MSMEs and large enterprises,” BSP Governor Benjamin Diokno said. “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.”