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MANILA, Philippines – Bank lending to micro, small and medium enterprises (MSMEs) remained far below ideal levels once set by law in the first quarter, as lenders remained wary of credit risks in a sector widely seen as a backbone of jobs and economic growth.
Latest data from the Bangko Sentral ng Pilipinas (BSP) showed total loans to MSMEs had reached P574.8 billion as of end-March. This increased 5 percent from a year earlier but unchanged from the end-2025 level.
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However, that amount only accounted for 4.73 percent of the Philippine banking industry’s P12.1-trillion lending portfolio. This was way below the prescribed ratio of 10 percent.
