Bank loans to MSMEs rise 7.13% to P536.51 billion in September

Loans extended by banks to micro, small, and medium enterprises (MSMEs) increased by 7.13 percent to P536.51 billion at the end of September, up from P500.809 billion in the same period last year.

However, this amount was lower than the P540.92 billion in loans posted at the end of June.

This comprised 4.45% of the banking system's P12.049-trillion loan book during the period.

Loans to micro and small enterprises (MSEs) amounted to P225.17 billion, a 9.9% increase from P204.886 billion a year earlier, making up 1.87% of the portfolio.

Meanwhile, banks lent P311.34 billion to medium enterprises, a 5.21% increase from P295.923 billion a year ago, accounting for 2.58% of the loan book.

The mandatory credit allocation requirement for MSME lending under the Magna Carta for MSMEs lapsed in June 2018.

Despite the lapse, the Bangko Sentral ng Pilipinas (BSP) continues to monitor banks' lending to MSMEs as part of its supervisory oversight and policy development.