Access to financing of micro, small and medium enterprises’ (MSMEs) are expected to expand more via a statistical reference tool being developed jointly by the Bangko Sentral ng Pilipinas (BSP) and the Japanese government.
“This (database) will lessen the dependence of banks on collateral, hence, increase MSME access to financing,” BSP Governor Benjamin Diokno said.
Diokno earlier said they were in the process of creating a comprehensive statistical reference tool for risk-based lending.
The government has been increasing its support to the MSME sector especially since the pandemic hit.
This, as the sector accounts for over 60 percent of domestic employment and has over 90 percent share among enterprises in the country.
For the BSP alone, it has allowed, for a limited period, the reduction in credit weight of loans extended to MSMEs that are currently in status and has assigned a lower risk weight for MSME exposure that are covered by guarantees.
These moves aim to provide banks additional liquidity for them to extend more loans to their clients, especially small businesses.
The BSP has also deferred by a year the implementation of the revised risk-based capital framework for stand-alone thrift banks (TBs) and rural and cooperative banks (RCBs) from the original implementation date of January 1, 2022.