Bank lending to micro, small and medium enterprises (MSMEs) in the Philippines reached P540.92 billion as of the end of June, a 10.81 percent increase from P488.13 billion in June 2024.
According to data from the Bangko Sentral ng Pilipinas (BSP), loans to micro and small enterprises (MSEs) totaled P220.55 billion, while loans to medium enterprises (MEs) amounted to P320.37 billion.
The BSP said the mandatory credit allocation for MSMEs under the Magna Carta expired on June 16, 2018.
It said despite the lapse, the BSP continues to monitor banks’ MSME lending through submitted quarterly exposure reports as part of its supervisory oversight and policy development.
The 10.8-percent growth in MSME credit exposures in June represents 4.6 percent of the banks’ total loans, it said.
The BSP added this reflects the continuing support of the banking system to MSMEs.
“The BSP continues to foster and strengthen a more conducive ecosystem for MSME lending by improving credit risk assessment, streamlining loan application processes, promoting digital finance, and developing enabling frameworks to advance MSME lending,” it said.
Data showed that universal and commercial banks provided P152.43 billion to MSEs and P259.58 billion to MEs.
Thrift banks contributed P34.17 billion to MSEs and P40.41 billion to MEs. Digital banks lent P590 million to MSEs and P60 million to MEs,
Rural and cooperative banks allocated P33.35 billion to MSEs and P20.31 billion to MEs.
