Local bank lending to MSMEs remains sluggish

Bangko Sentral ng Pilipinas

MANILA, Philippines — Micro, small and medium enterprises (MSME) continued to get a small fraction of loans from banks in the second quarter, as both lenders and borrowers retreated amid the economic fallout from a prolonged conflict in the Middle East.

Loans to MSMEs accounted for 4.48 percent of the local banking industry’s total lending portfolio as of end-June, slightly smaller than the 4.53 percent share in the prior quarter, data from the Bangko Sentral ng Pilipinas (BSP) showed. This was also way below the prescribed ratio of 10 percent.

READ: PH banks see steady lending standards in Q3

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Local bank lending to MSMEs remains sluggish

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