Philippine banks have lent more funds to small- and medium- enterprises than the minimum 8 per cent the law requires, according to the Bangko Sentral ng Pilipinas (BSP).
BSP deputy governor for bank supervision and examination Alberto Reyes said that based on the latest SME lending report, banks were "overcomplying" with the requirements under the Magna Carta for SMEs.
The SME law requires banks to set aside 6 per cent of their total loan portfolio to "small" enterprises and another 2 per cent for "medium" enterprises.
Small enterprises are defined as those with capital of between P1.5m and P15m, while medium enterprises are capitalised from P15m to P60m.
SMEs make up about 99.5 per cent of all manufacturing and service establishments and account for almost 67 per cent of the country's employment.
Considered the backbone of the domestic economy, the sector contributes about a third of the value-added in the production sector.
