The central bank is encouraging financial institutions to lend more to both small and large companies to help restore growth to the country’s economy and it is doing so by setting a generous ceiling on the amount of loans that can be used to comply with bank reserve rules.
In a statement, the Bangko Sentral ng Pilipinas (BSP) said its policy-making Monetary Board has set limits in the amount of loans to micro-, small- and medium enterprises and large enterprises that may be used by banks as alternative compliance with the reserve requirements.
Aggregate loans to small and large firms used under this relief measure should not exceed P300 billion and P425 billion, respectively.
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Keep on reading: Bangko Sentral pushes banks to lend more to firms