The policy-making body of the Bangko Sentral ng Pilipinas is waiving the reporting requirements for banks making certain un-restructured loans to small- and medium-size enterprises (SMEs) to further spur lending in the country.
Among the reporting requirements set under Circular 329, was the submission of the latest income tax returns or audited financial statements by SMEs, however, Reyes admitted that many SMEs could not afford to pay auditors' fees and were therefore unable to submit such requirements. In lieu of the audited financial statements, Reyes said banks can utilise their credit evaluation standards, consistent with central bank standards, to determine the viability of the SME and its capacity to pay.