September 12, 2025 | 12:00am
MANILA, Philippines — Financial institution lending to micro, small and medium enterprises (MSMEs) continued to develop within the first half, however remained far under the mandated threshold set below the Magna Carta for small and medium companies.
Information from the Bangko Sentral ng Pilipinas confirmed that loans prolonged to MSMEs rose by 10.8 % to P540.92 billion as of end-June from P488.13 billion a yr earlier.
Regardless of the rise, the banking sector’s general compliance ratio stood at solely 4.59 %, lower than half of the 10-percent quota required below Republic Act 6977, as amended by RA 8289 and RA 9501.
The regulation requires banks to put aside eight % of their mortgage portfolio for micro and small enterprises in addition to two % for medium companies.
The trade’s complete mortgage guide, web of exclusions, climbed by 9.1 % to P11.78 trillion from P10.8 trillion final yr. This implies MSME allocations ought to have reached about P1.18 trillion, greater than double the precise disbursed quantity.
By phase, loans to micro and small enterprises went up by 12 % to P220.55 billion from P196.83 billion. Nonetheless, this quantity was simply 1.87 % of the trade’s mortgage portfolio – effectively under the mandated P942.63 billion or eight-percent share.
In the meantime, credit score to medium-sized enterprises elevated by 10 % to P320.37 billion from P291.30 billion. The quantity exceeded the required P235.66 billion, translating to a 2.72-percent compliance ratio, above the mandated two %.
Primarily based on the kind of financial institution, the compliance of common and business banks with micro and small enterprises hit P152.43 billion within the first half, equal to just one.42 % of their P10.74-trillion mortgage portfolio.
Huge banks’ compliance with medium-sized enterprises stood at P259.58 billion or 2.42 % of their mortgage guide.
The compliance of thrift banks with micro and small enterprises reached P34.17 billion or 4 % of their P846.58-billion mortgage portfolio. However thrift banks exceeded the credit score quota for medium enterprises as their compliance with the sector hit P40.41 billion or 4.77 % of their mortgage guide.
Then again, the full compliance of rural and cooperative banks with micro and small enterprises hit P33.35 billion by the tip of June. That is equal to twenty.5 % of their P163.06-billion credit score guide and effectively above the minimal quantity required by regulation.
Their compliance with medium enterprises stood at P20.31 billion or 12.5 % of their mortgage portfolio.
The compliance of digital banks with micro and small enterprises reached P590 million, representing 1.71 % of their P34.74-billion mortgage portfolio. The overall compliance of digital banks with medium enterprises stood at round P60 million, or 0.18 % of their mortgage guide.
